BRICS bank gets KV Kamath as its first head

The bank will finance infrastructure projects in BRICS nations with 40 percent population of the world

GN Bureau | May 11, 2015


#KV Kamath   #ICICI Bank   #World Bank   #BRICS   #bank   #Brazil  

KV Kamath has been elected as the chief of $50-billion BRICS New Development Bank, which aims to fund infrastructure projects in developing nations.  The bank looks to be an alternative to other multi-lateral agencies with the focus on the development agenda of BRICS countries.

At the BRICS summit in Brazil last year India was accepted as the head of the development bank. China and India will preside over its operations for the first six years, followed by five-year terms for Brazil and then Russia, leaders of the five-country group announced at the 6th BRICS (Brazil, Russia, India, China and South Africa) summit.

The BRICS countries comprise over one-fifth of the global economy at nearly $16 trillion in GDP and 40 per cent of the world's population.

Kamat is ICICI Bank's non-executive chairman and chairman of IT giant Infosys. It will be headquartered in Shanghai, China. He has a degree in mechanical engineering and did his management studies at the Indian Institute of Management, Ahmedabad.

Kamath has had served at the Asian Development Bank. Kamath is known for his views on low interest rates and optimistic outlook.  At ICICI Bank he pioneered bold fund raising programmes, expanding the scope of financial markets, funding middle-class consumption and enabling global dreams of Indian companies.

What is BRICS bank?
The NDB has been given $50 billion in initial capital. The BRICS bank appears to work on an equal-share voting basis, with each of the five signatories contributing $10 billion. The capital base is to be used to finance infrastructure and “sustainable development” projects in the BRICS countries initially, but other low- and middle-income countries will be able buy in and apply for funding. BRICS countries have also created a $100 billion Contingency Reserve Arrangement (CRA), meant to provide additional liquidity protection to member countries during balance of payments problems. The CRA is being funded 41 percent by China, 18 percent from Brazil, India, and Russia, and 5 percent from South Africa.

Developing nations hope that BRICS bank/CRA may eventually challenge World Bank-IMF hegemony over matters such as:  funding for basic services, emergency assistance, policy lending, and funding to conflict-affected states.

Comments

 

Other News

SC verdict on Article 370 abrogation is historic: Modi

Prime minister Narendra Modi said that the Supreme Court’s verdict on the abrogation of Article 370 is historic and constitutionally upholds the decision taken by the Parliament of India on 5th August 2019. Modi also said that the court, in its profound wisdom, has fortified the very

A portrait of Dom community opens a world not seen by many

Fire on the Ganges: Life among the Dead in Banaras By Radhika Iyengar 4th Estate / HarperCollins, 348 pages, 599

Revamp BMC Engineering Department for better governance, says think tank

Calling for reforms in the Engineering Department of BMC, Mumbai Vikas Samiti, a not-for-profit organisation has said that less than optimum performance of Engineering Function has added to the woes of citizens and deterioration in the quality of life in the metro. In its recently released r

NGO hails Maharashtra move to amend Insecticide Act

Hailing the Maharashtra government for introducing a bill to amend the Insecticide Act, 1968, Pesticide Action Network (PAN) India has called the amendments ‘very  focussed’ and urged the state to expand their scope to address other challenges. The bill, introduced in the a

‘Garba of Gujarat’, now a Unesco Intangible Cultural Heritage

`Garba of Gujarat` has been inscribed in the Representative List of Intangible Cultural Heritage (ICH) of Humanity by UNESCO, under the provisions of the 2003 Convention for the Safeguarding of Intangible Cultural Heritage during the 18th meeting of the Intergovernmental Committee for the Safeguarding of t

Cyber frauds helpline has helped save Rs 930 crore

Since its inception, Citizen Financial Cyber Fraud Reporting and Management System has witnessed more than 12.77 lakh complaints registered (till November 15, 2023), and has saved more than Rs. 930 crore in more than 3.80 lakh complaints. This was stated by minister of state for home affair

Visionary Talk: Amitabh Gupta, Pune Police Commissioner with Kailashnath Adhikari, MD, Governance Now


Archives

Current Issue

Opinion

Facebook Twitter Google Plus Linkedin Subscribe Newsletter

Twitter