Russia offers debt-ridden Greece funds from Brics bank

Russia has said that debt-ridden Greece can borrow money from Brics' New Development Bank to crawl out of its present crisis.

In order to be eligible for the funding, it is enough if Greece buys shares in the recently-launched bank, said Russian Deputy Finance Minister Sergey Storchak.

"If they buy, so to speak, a few shares and become members of the bank, they will be able to count on the resources. We do not have any co-relation between a contribution and an amount of funding. There is general agreement that the system of the countries' assets will be balanced."

The remarks come as Greece battles a severe financial crisis amid looming fears that Athens could exit the single currency eurozone and probably the union.

Subsequent to the Greek referendum which overwhelmingly rejected the austerity terms offered by international creditors, eurozone leaders have set a final deadline of Sunday (12 July) for Greece to come up with fresh proposals.

The Russian deputy minister added: "Greeks happened to be first who got interested in Brics bank. As soon as the institution starts operation, the board of directors will prepare and the board of governors will approve the procedure to consider membership applications from new candidates."

"I do not see any problem if all five governments order their governors to uphold [Greece's] membership."

The Shanghai-headquartered bank, which is expected to begin full operations in April 2016, has a charter capital of $50bn (£32.5bn, €45.5bn) which would be increased to $100bn later. Russia had already invited Greece to formally join the Brics, formed by Brazil, Russia, China, India and South Africa, as the sixth member.

Storchak's remarks have come just on the eve of the key Brics summit in the remote Russian city of Ufa. Leaders of all the five countries have arrived in Russia to take part in the two-day conference.