Brics' New Development Bank to be launched at summit in Russia

The $100bn (£65.2bn, €91.6bn) New Development Bank promoted by the Brics nations is expected to be launched during the group's summit at Russia's Ufa in July, along with a currency reserve pool worth the same amount.

"We expect to reach agreement in Ufa on the launch of practical operations of the BRICS Bank and a pool of currency reserves," President Vladimir Putin was quoted as saying by Russia's TSS news agency.

Putin added that Russia is keen to boost its ties with the Brics group, which "has already become an influential factor in world policy and economy."

"Russia is interested in further intensifying cooperation between the BRICS countries and developing new interaction mechanisms, including in the financial and economic sphere," he said.

The Brics nations – Brazil, Russia, India, China and South Africa – earlier decided to set up a $100bn bank and reserve fund to address emergency situations with similar paid-up capital. The bank will begin operations with a $50bn subscribed capital, divided equally between its member nations.

The bank, which would finance infrastructure projects in the Brics nations and other developing countries, is expected to rival other international financing agencies such as the International Monetary Fund and the World Bank. While China got the new bank's headquarters set in Shanghai, India had the right to nominate the first president.