Establishment of Brics development bank on course

Plans are on track for the establishment of a Brics development bank, according to the Department of Trade and Industry (dti). A spokesman for the dti confirmed to FTW that talks around the development bank would take place on the sidelines of the G20 Summit in Russia in September where Brics leaders are expected to meet. “The leaders will receive the progress reports from the various finance ministers around the development bank,” said the spokesman. Earlier this month Daniel Mminele, deputy governor of the South African Reserve Bank, said the countries had started negotiating for the establishment of a New Development Bank (NDB). “Chief negotiators have been appointed by each country and have commenced negotiations around issues such as membership; governance; capital size; structure and articles of agreement, amongst others.” The idea of the NDB was one of the key outcomes of the Fifth Brics Summit that took place in Durban in March this year. The aim of the bank is to address financing for global infrastructure backlogs and to mobilise resources for infrastructure and sustainable development projects in Brics – a priority with the grouping as a whole. In his address to the Brics Business Council in Johannesburg recently, President Jacob Zuma said he was optimistic about the establishment of the NDB and believed that the meeting at the G20 Summit would be fruitful, as it would provide even further impetus for the Brics-led bank. “A co-ordinated foreign currency approach amongst Brics nations will definitely assist in reducing currency volatility and under or over-valuations, thereby enhancing both trade and investment,” he said. INSERT & CAPTION Chief negotiators have been appointed by each country and have commenced negotiations. – Daniel Mminele