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BRICS development bank can be headquartered in Moscow – Duma

March 27, 2013, 14:42 UTC+3
The creation of the BRICS development bank is one of the key intrigues at the Durban summit
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DURBAN, South Africa, March 27 (Itar-Tass) – The BRICS development bank can be headquartered in Moscow, president of the Association of Regional Banks Anatoly Aksakov said.

Speaking at the BRICS summit on Wednesday, Aksakov, who is also deputy chairman of the State Duma Committee on Financial Markets, said, “It will be convenient for all BRICS participants if the organisation is headquartered in Moscow. We should take into account the fact that Russia has a big successful experience in this aspect.”

Russia can propose for financing projects that India and China show interest in, i.e. to build the East-West and North-South transport corridors, the lawmaker said.

He noted that steps towards stimulating syndicated lending and project financing could become one of the most important trends of cooperation. Aksakov also considers the creation of an association of banks as a non-commercial public organisation one of the priorities, which will help expand credit granting to the economy. The association will be able to become a platform to study experience, exchange views and work out recommendations on expanding credit granting to the economic development and to play the role of non-governmental organisation in order to conduct an independent project review on investment proposals, Aksakov explained.

The creation of the BRICS development bank is one of the key intrigues at the Durban summit. There are different views on its start-up capital, the location of the headquarters and its role in world finances. South Africa, which hosts the summit, promotes an idea of deploying the headquarters in its country.

Experts also debate the size of the start-up capital by naming the sums at the amount of about 50 billion dollars. However, it is not clear yet in what proportion it will be divided between the BRICS countries – in equal shares or based on GDP.

Meanwhile, on Tuesday, March 26, the BRICS finance ministers failed to reach agreement on key issues for creating the development bank. Russian Finance Minister Anton Siluanov said the ministers failed to reach agreement on certain issues.

Siluanov said that the finance ministers could not agree on separate issues such as the amount of capital and the size of contributions to be made by each country.

"The sides also failed to reach a consensus on the principles of governance: whether it should be carried out on equal terms or be proportionate to the size of contributions made by each of the BRICS states,” Siluanov explained.

The minister said that a place for the bank’s future headquarters had not been chosen either. “I can only say that Russia doesn’t claim that the bank be necessarily located in its territory. We certainly understand that other countries could be more interested,” the Russian finance minister said. He believes it would be premature to talk about the headquarters’ location so long as the key issues remain unsolved.

“We agreed to work further. The decision will be made, if it is to be made, at the level of the heads of state,” Siluanov said.

The most important thing, the minister said, is to decide where to find resources for the project. He explained that the initially proposed capital size was 10 billion dollars. “It’s going to be 2 billion dollars for each member if divided by five. It’s big money. It’s going to be hard for us to debate this issue in parliament. I think that all the other states will also have this problem,” Siluanov emphasized.


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