BRICS eye creation of multi-lateral bank

Monday, 26 March 2012 00:00 - - {{hitsCtrl.values.hits}}

Major emerging market economies will look closer at creating a joint development bank to co-ordinate their financial power as the world economy falters, said Brazilian Trade Minister Fernando Pimentel.

Development banks of the so-called Brics group of emerging economies plan to ink memorandums of understanding next week in India to work on the creation of a multilateral bank that could finance investments in those nations and abroad, Pimentel said.

Leaders of Brics nations - Brazil, Russia, India, China and South Africa - will meet at a summit in India next week to discuss the world economy and closer co-ordination.

'Brazil is interested, we sympathize with the proposal,' Pimentel told foreign reporters in Brasilia.

'This is a global tool that will allow for better coordination among the five most dynamic economies in the world.'He said there were no operational details yet about the possible bank and that talks remained in the early stages.' For years the Brics have demanded more influence on global financial institutions long controlled by the United States and Europe.

Developing nations are for the first time challenging the U.S.'s grip on the World Bank by backing candidates from emerging markets. Still, most analysts expect the U.S. to remain in control of the global lender. On Friday, US President Barack Obama nominated a Korean-American known for work fighting HIV/AIDS in impoverished countries to lead the World Bank.-