BRICS signs deal to create development bank

The leaders of BRICS on Tuesday at Fortaleza, have signed a deal to create a new $100bn development bank and a reserve fund seen as alternatives to Western-led institutions headquartered in the Chinese city of Shanghai.  The New Development Bank’s first president will be from India while the board’s chairman will be Brazilian, according to the declaration released at a summit in Fortaleza, Brazil. The bank will have an initial subscribed capital of $50bn followed by an authorised capital of $100bn, equally shared among the BRICS members – Brazil, Russia, China, India and South Africa.