BRICS nations agree to set up development bank

Durban, South Africa, Mar 27 (EFE).- The BRICS group of developing nations, composed of Brazil, Russia, India, China and South Africa, have agreed to create their own development bank, South African President Jacob Zuma said.

"We have decided to enter formal negotiations to establish a BRICS-led new development bank," Zuma said in the plenary session of the fifth annual summit of these five large emerging economies, a gathering that concluded Wednesday in this port city.

The bank's goal will be to "mobilize resources" and spur infrastructure construction and "sustainable development" in developing nations, the meeting's host said.

The contribution of each member country and how much total capital the bank will have are still to be determined, Zuma said.

The proposed development bank will complement existing international financial institutions such as the World Bank and the International Monetary Fund, which the BRICS nations deem to be excessively controlled by the United States and Europe.

BRICS heads of state gave the go-ahead for the bank after receiving assurances from their respective finance ministers of the institution's "viability."

The group of five large emerging economies also are working to set up a $100 billion joint foreign exchange reserves pool to provide members with greater financial stability.

The BRICS countries represent 42 percent of the world's population and roughly 45 percent of the global workforce, according to the group's figures.

In 2012, Brazil, Russia, India, China and South Africa accounted for 21 percent of global gross domestic product and trade among them amounted to $282 billion.