A Russian Cabinet of Ministers commission on Monday approved the ratification on an agreement to create a pool of conditional currency reserves for BRICS member states at $100 billion.
MOSCOW – A Russian Cabinet of Ministers commission on Monday approved the ratification on an agreement to create a pool of conditional currency reserves for BRICS member states at $100 billion.
The Russian Foreign Ministry and Finance Ministry introduced the legislation to create the joint bank between the countries of Brazil, Russia, India, China, and South Africa (BRICS).
“The overall volume has been set at $100 billion. China’s share is $41 billion, South Africa’s is $5 billion, and Brazil, India and Russia’s is set at $18 billion each,” according to the document, published on the Cabibet of Ministers’ website.
The currency pool will be maintained by a board of directors, a permanent committee, and a coordinator, whose functions will be performed by the state chairing BRICS.
A country-borrower may use up to the 70 percent maximum of state-limit funds if it has an approved International Monetary Fond (IMF) crisis stabilization program and fulfills its obligations under the agreement, according to the document. Up to 30 percent of the resources may be used without such a deal with IMF.
The agreement will be considered at a government session, according to the Russian Cabinet of Ministers.
The agreement on the creation of the pool was worked out by the finance ministries of the BRICS countries at the June 2012 meeting in Mexico.
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