Beijing - The five Brics nations had reached a broad consensus on their $100 billion (R1.07 trillion) development bank although some differences remained, a senior Chinese diplomat said yesterday ahead of a summit in Brazil next week.
The leaders of Brazil, Russia, India, China and South Africa are expected to sign a treaty to launch the bank officially when they meet at the summit in the northern Brazilian city of Fortaleza on July 15.
Negotiations to create the lender have dragged on for two years, with some members growing weary of China’s desire to have a bigger stake in the bank by putting in more capital.
A senior Brazilian government official said in May that the five nations were likely to agree to fund the Brics development bank equally, giving them the same rights.
Briefing reporters ahead of the summit, China’s Vice-Foreign Minister Li Baodong would not be drawn on the specifics of the share structure, but was optimistic.
“On the Brics development bank, all parties have extensive consensus on this issue. Of course there are a few differences and different viewpoints on technical issues,” Li said.
“We are fully confident that we can reach consensus and establish the Brics development bank at this meeting.”
Referring to the issue of bank shares, Li said: “On this type of technical issue, Brics members must establish consensus through friendly consultation.
“There are all kinds of different considerations, but the goal is to establish the Brics bank as soon as possible.”
The bank would have to be ratified by the countries’ legislatures and could begin lending in two years, the Brazilian official said earlier.
It would help cover growing demand for project financing that has not entirely been met by global multilaterals, which, for years, have been heavily criticised for meddling in the domestic policies of sovereign borrowers.
The Brics nations also needed to decide if the bank would be based in New Delhi, Shanghai, Johannesburg or Moscow.
Brazil would not offer headquarters because of upcoming presidential elections, which could delay negotiations, the Brazilian official said.
Li said Chinese President Xi Jinping would visit Argentina, Venezuela and Cuba on his swing through the region, and at the Brics summit would have his first meeting with new Indian Prime Minister Narendra Modi.
But he would not attend the final of the World Cup, as Brazil had hoped.
“Based on [his] schedule he will not be able to appear at the World Cup final held in Brazil. This is unfortunate,” Li added. - Reuters