India will enjoy the first presidentship of the rotational position of the BRICS-promoted multilateral development bank — New Development Bank (NDB). According to a note issued by the secretariat of the 6th BRICS Summit at the Brazilian beach resort of Fortaleza, the order of rotation of Presidents of the bank would be India, Brazil, Russia, South Africa and China.

The Ministers of the five nations also decided that a Special Fund would be created within NDB at the earliest, with the participation of all founding members, for the purpose of helping project preparation and implementation. China will be the largest contributor. Appointment of staff for the bank will be made on the principle of merit according to requirements established by the board of directors.

Ministers also decided on Tuesday to establish the first regional headquarters of the bank in Johannesburg concurrently with the global headquarters of the bank in Shanghai. Subsequent regional offices will be established, as needed, in Brazil, Russia, and India. On the occasion of the signing of the agreement on the New Development Bank, Ministers from the BRICS countries met and decided to mobilise resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies.

The NDB will have an initial authorised capital of $100 billion. The initial subscribed capital will be $50 billion, equally shared among the founding members. The first chair of the Board of Governors would be from Russia. The first chair of the Board of Directors would be from Brazil.

The nations also signed a treaty for the establishment of the BRICS Contingent Reserve Arrangement (CRA) with an initial size of $100 billion. This arrangement will help countries “forestall short-term liquidity pressures, promote further BRICS cooperation, strengthen the global financial safety net and complement existing international arrangements,” said the Fortaleza declaration. “We appreciate the work undertaken by our Finance Ministers and Central Bank Governors. The agreement is a framework for the provision of liquidity through currency swaps in response to actual or potential short-term balance of payments pressures,” the declaration said.

The five emerging nations also signed the Memorandum of Understanding on Cooperation among BRICS Export Credit and Guarantees Agencies that will improve the support environment for increasing trade opportunities among groupings.

A Cooperation Agreement on Innovation within the BRICS Interbank Cooperation Mechanism was also part of the accords. The five recognised that there was potential for the BRICS insurance and reinsurance markets to pool capacities. “We direct our relevant authorities to explore avenues of cooperation in this regard,” the Fortazela declaration said.

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