A new US$100 billion international bank dedicated to the emerging “BRICS” countries opened in China’s commercial hub Shanghai yesterday, officials said, as an alternative to other multilateral lenders.
The “New Development Bank” (NDB), backed by the so-called emerging BRICS nations, Brazil, Russia, India, China and South Africa, has been viewed as a challenge to Washington-based institutions.
The NDB’s Web site explicitly describes it as an “alternative to the existing US-dominated World Bank and International Monetary Fund” which is to address needs for infrastructure and sustainable development. It comes as Beijing — which is seeking a greater role on the global political stage to mirror its rise to become the world’s second-largest economy — is also setting up a separate Asian Infrastructure Investment Bank (AIIB).
Chinese Minister of Finance Lou Jiwei (樓繼偉) played down the competitive aspect.
“The NDB will supplement the existing international financial system in a healthy way and explore innovations in governance models,” he told the NDB’s opening ceremony in Shanghai, as quoted by Xinhua news agency.
The bank says on its Web site that it will have authorized capital of US$100 billion, with US$50 billion paid in initially.
Xinhua quoted NDB president K. V. Kamath, formerly a private banker in India, as saying the institution’s management was “working on initiation of operations,” including “making business policy” and “developing project preparations.”
Operations would begin late this year or early next year, he added.
The opening comes two weeks after a BRICS summit hosted by Russian President Vladimir Putin.
Moscow — which has suffered huge currency fluctuations and struggled to attract investors since the outbreak of the crisis in Ukraine — sees the bank and a BRICS currency reserve pool as alternative global financial institutions.
At the time of the summit, Russian Minister of Foreign Affairs Sergei Lavrov said in a statement that BRICS “illustrates a new polycentric system of international relations” demonstrating the increasing influence of “new centers of power.”
The BRICS nations, which represent 40 percent of the world’s population, formally agreed to establish the bank at a meeting in Brazil in July last year.
The World Bank said it hopes to work with the newcomer.
“We are committed to working closely with the New Development Bank and other multilateral institutions, offering to share our knowledge and to co-finance infrastructure projects,” World Bank president Jim Yong Kim said in a statement.
The regionally focused Asian Development Bank also said it would “look forward” to working with the NDB.
Chinese analysts denied the BRICS bank was aimed at challenging other multilateral agencies.
Tropical Storm Gaemi strengthened into a typhoon at 2pm yesterday, and could make landfall in Yilan County tomorrow, the Central Weather Administration (CWA) said yesterday. The agency was scheduled to issue a sea warning at 11:30pm yesterday, and could issue a land warning later today. Gaemi was moving north-northwest at 4kph, carrying maximum sustained winds near its center of up to 118.8kph and gusts of 154.8kph. The circumference is forecast to reach eastern Taiwan tomorrow morning, with the center making landfall in Yilan County later that night before departing from the north coast, CWA weather forecaster Kuan Shin-ping (官欣平) said yesterday. Uncertainty remains and
SEA WARNING LIKELY: The storm, named Gaemi, could become a moderate typhoon on Wednesday or Thursday, with the Taipei City Government preparing for flooding A tropical depression east of the Philippines developed into a tropical storm named Gaemi at 2pm yesterday, and was moving toward eastern Taiwan, the Central Weather Administration (CWA) said. Gaemi could begin to affect Taiwan proper on Tuesday, lasting until Friday, and could develop into a moderate typhoon on Wednesday or Thursday, it said. A sea warning for Gaemi could be issued as early as Tuesday morning, it added. Gaemi, the third tropical storm in the Pacific Ocean this typhoon season, is projected to begin moving northwest today, and be closest to Taiwan on Wednesday or Thursday, the agency said. Today, there would likely
DISRUPTIONS: The high-speed rail is to operate as normal, while several airlines either canceled flights or announced early departures or late arrivals Schools and offices in 15 cities and counties are to be closed today due to Typhoon Gaemi, local governments announced last night. The 15 are: Taipei, New Taipei City, Taoyuan, Tainan, Keelung, Hsinchu and Kaohsiung, as well as Yilan, Hualien, Hsinchu, Miaoli, Chiayi, Pingtung, Penghu and Lienchiang counties. People should brace for torrential rainfall brought by the storm, with its center forecast to make landfall on the east coast between tonight and tomorrow morning, the Central Weather Administration (CWA) said. The agency issued a sea warning for the typhoon at 11:30pm on Monday, followed by a land warning at 11:30am yesterday. As of
CASUALTY: A 70-year-old woman was killed by a falling tree in Kaohsiung as the premier warned all government agencies to remain on high alert for the next 24 hours Schools and offices nationwide are to be closed for a second day today as Typhoon Gaemi crosses over the nation, bringing torrential rain and whipping winds. Gaemi was forecast to make landfall late last night. From Tuesday night, its outer band brought substantial rainfall and strong winds to the nation. As of 6:15pm last night, the typhoon’s center was 20km southeast of Hualien County, Central Weather Administration (CWA) data showed. It was moving at 19kph and had a radius of 250km. As of 3pm yesterday, one woman had died, while 58 people were injured, the Central Emergency Operation Center said. The 70-year-old