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India approves agreement on BRICS development bank

Staff writer ▼ | February 27, 2015
The Union Cabinet of India, chaired by Prime Minister Narendra Modi, gave approval for establishing the New Development Bank (NDB) and the BRICS Contingent Reserve Arrangement (CRA).
BRICS development bank
BRICS development bank   Prime Minister Narendra Modi gave a green light
Heads of the five nation BRICS group — Brazil, Russia, India, China and South Africa — decided at their sixth summit in Fortaleza in July last year to create a development bank as well as a reserve fund to finance infrastructure projects and other sustainable development projects.

"It would also reflect the close relations among BRICS countries, while providing a powerful instrument for increasing their economic cooperation," an official release said.

The $100 billion BRICS CRA would help countries deal with short-term liquidity pressures, provide mutual support and further strengthen financial stability.

The agreement will enter into force and the Bank begin operations only after all member-countries deposit their instruments of ratification with Brazil.

The release added that signing of the agreement for the establishment of the New Development Bank was expected to allow India to raise and obtain more resources for the much-needed infrastructure development, the lack of which was coming in the way of inclusiveness and growth.


 

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