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The New Development Bank created by the BRICS (Brazil, Russia, India, China and South Africa) started its operations in Shanghai on Tuesday, Russian newspaper Gazeta.ru reported with reference to the Xinhua news agency.
The bank is set up to foster greater financial and development cooperation among the five emerging markets. The bank's primary focuses on financing infrastructure projects, according to Xinhua
This fund will consist of $10 billion of "paid-in capital", with $2 billion to be provided by each member state. The first president is from India, with Shanghai being selected as the Bank’s headquarters. The Bank shall have an initial authorized capital of $100 billion.
New Development Bank is a multilateral development bank operated by the BRICS states as an alternative to the existing US-dominated World Bank and the International Monetary Fund.
Created at the initiative of the Russian leadership in 2006, BRIC has become a new global forum uniting Brazil, Russia, India and China. The grouping was originally known as "BRIC" before the inclusion of South Africa in 2010.