BRICS edge closer to deal on development bank

BRICS emerging nations are close to reaching a deal that would create a joint development bank, the South African diplomat charged with managing an upcoming summit of the five countries said on Tuesday.

“There is a lot of convergence on key issues,” said Anil Sooklal, the deputy director general at the Department for International Relations.

While details have yet to be finalised, Brazil, Russia, Indian, China and South Africa appear to be in near agreement on the toughest issue concerning the bank: how much cash they will each put in.

“The amount of $50 billion each is something we have all found comfort with, but it remains a work in progress.”

The establishment of a bank is one of South Africa’s priorities for a BRICS summit it will host in Durban in March.

Ahead of the meeting, finance ministers of the group have been charged with examining the feasibility of establishing a bank.

“They have a number of meetings and will report to the BRICS leaders on the fringes of the G20 summit in Moscow next month,” Sooklal said.

South Africa has expressed its desire to host the bank, but he location has not yet been decided upon.

“We have agreed that the bank must be led by the BRICS and that the BRICS will have the major shareholding. We are still deciding on whether other partners will be brought in.

“The question of a host country has not come up. It will be situated in a BRICS country and exactly where has still to be discussed,” said Sooklal.