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China expects headway on BRICS bank at Durban summit

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(Globalpost/GlobalPost)

China expects progress towards creation of a development bank and a joint foreign reserves fund at the BRICS summit of five emerging powers in South Africa, President Xi Jinping said in remarks released here Wednesday.

China "backs the initiative of (summit host) South Africa to include as priority issues on the agenda the establishment of a development bank and a joint foreign reserves fund," the Chinese leader said told media representing each of the five member states.

He added that Beijing hopes that the summit will make "positive headway in these areas" at the March 26-27 summit in Durban, which will bring together the leaders of Brazil, China, India, Russia and South Africa.

Details about the formation of the development bank are expected to be thrashed out at the Durban gathering.

Last month, a senior South African diplomat revealed that the five BRICS nations were close to reaching a deal to create the bank, which is meant to fund infrastructure and development projects in member states and developing nations.

He indicated that a capital investment of $50 billion was an amount that all members may be comfortable with.

South Africa has expressed its desire to host the bank, but the location has not yet been decided upon.

Also to be discussed in Durban are plans for a joint foreign reserves mechanism under which BRICS central banks would pledge to pool some of their foreign reserves for use by any country that might need emergency aid.

Before heading to South Africa, Xi, who took office March 14, is to travel to Russia Friday, a visit he said signals "the high importance China attaches to its relations" with Moscow.

In the interview with the Brazilian economic daily Valor, Xi stressed the importance of deepening ties with each of its fellow BRICS members.

He also advocated a greater role for leading emerging nations in global economic system.

"The global system of economic governance needs to reflect the profound changes that have occurred on the world economic stage and increase the representation and clout of emerging and developing countries," Xi added.

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http://www.globalpost.com/dispatch/news/afp/130320/china-expects-headway-brics-bank-at-durban-summit