BRICS lays down challenge to IMF and World Bank and launches own bank
The leaders of Brazil, Russia, India, China and South Africa will create a 100 billion dollar emergency fund and a development bank to the tune of 50 billion dollars. Indian prime minister Modi and Chinese President Xi meet for the first time at summit.

Fortaleza (AsiaNews / Agencies) - A development bank and a common emergency fund for BRICS countries (Brazil, Russia, India, China and South Africa) is the historic agreement reached yesterday evening by the five leaders at a summit held in Fortaleza, Brazil.

The headquarters will be in Shanghai, China, and India will be the first president. The objective is to enhance the growth of their respective countries, providing alternative sources of funding to the International Monetary Fund (IMF) and the World Bank.

BRICS - said the Russian Minister of Finance Anton Siluanov - have chosen Shanghai for the headquarters because the city offers the best infrastructure and draws large investors. The first president of the Board of Governors will be Russian, and the first president of the Board of Directors will be Brazilian. The regional center for the African continent will be created in South Africa,.

The development bank will have an initial capital of $ 50 billion - extendable to 100 billion - which divided equally among all nations, to prevent one having power over another. The emergency fund (Contingent Reserve Arrangement) will have a capital of 100 billion dollars, to which member countries will be able to access in case of crisis.

The Fortaleza summit was also the first occasion in which the Chinese president Xi Jinping and Narendra Modi, the new prime minister of India, met face to face. On Twitter, Modi wrote: "I had a very fruitful meeting with Chinese President Xi Jinping. We discussed various issues."