Millennium Post

Differences over BRICS bank will be resolved: China

Sounding upbeat about the future of BRICS, China on Monday acknowledged differences among member countries over the ratio of funding to the block's Development Bank but said efforts are under way to reach a deal at this month's summit in Brazil.

Stating that BRICS comprising of Brazil, Russia, India, China and South Africa would prove sceptics wrong, Chinese Vice Foreign Minister Li Baodong told a media briefing here that the economic slowdown was due to external reasons than that of the internal issues. Chinese President Xi Jinping will attend the summit of the leaders of BRICS which is taking place on 15-16 July in Brazil during which he will hold his first meeting with Prime Minister Narendra Modi.

About setting up of the BRICS Development Bank, he said ‘there is consensus about the bank but there are some differences regarding technical issues’. Replying to questions about the probability of the summit giving a green signal to the Bank, Li said all the parties are making full use of financial channel to intensify consultations.

‘Whether this summit will reach and agreement about the establishment of the bank, we are fully confident about that,’ he said. The bank was mooted in 2012 and approved during last year’s summit in South Africa. Seen as an attempt by the emerging economies to come up with their own bank to rival the World Bank and IMF, the BRICS Bank however was bogged down over difference on issues like start-up capital as well as its headquarters.
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