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

Voter turnout: Drop from 2019 reduces further

As the voting percentages dropped drastically in the first couple of phases of the ongoing general elections, observers and analysts spoke of ‘voter apathy’ blamed it on a lack of “wave” this time – apart from the heatwave, that is. The latest figures after the fourth phase, h

GAIL reports annual revenue of Rs.1,30,638 crore

GAIL (INDIA) Limited has reported 75% increase in Profit before Tax (PBT) of Rs.11,555 crore in FY24,  as against Rs 6,584 Cr in FY23. Profit after Tax (PAT) in FY24 stands at Rs. 8,836 Cr as against Rs.5,302 Cr in FY23, a 67 % increase. However, revenue from operations registered a fa

Women move forward, one step at a time

“Women’s rights are not a privilege but a fundamental aspect of human rights.” —Savitribai Phule In India, where almost two-thirds of the population resides in rural areas, women’s empowerment initiatives are extremely critical for intensifying l

Why you should vote

What are the direct tangible benefits that you want from the government coming in power? The manifestos of various parties set a host of agendas which many times falls back in materialising the intended gains. Governance failures, policy lapses, implementation gaps, leadership crisis and cultural blockages

How the role of Ayurveda evolved pre- and post-independence

Ayurveda, Nation and Society: United Provinces, c. 1890–1950 By Saurav Kumar Rai Orient BlackSwan, 292 pages, Rs 1,400  

General Elections: Phase 4 voting on in 96 seats

As many as 17.7 crore electors are eligible to vote in the fourth phase of general elections taking place on Monday in 10 states/UTs. 175 Legislative Assembly seats of Andhra Pradesh and 28 Legislative Assembly seats of Odisha are also going to polls in this phase. Polling time in select as

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