Government agreed to contribute $ 18 bln. for BRICS

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The Russian government agreed to contribute 18 billion dollars to the BRICS pool of reserve currencies. The Ministers submitted the relevant draft law to the State Duma, RIA Novosti reported with reference to the official press service of the Cabinet on Friday, April 10.

"To approve the draft federal law "On ratification of the agreement establishing a pool of reserve currencies of the BRICS" and to submit it to the State Duma, according to the established procedure," said the statement.

The agreement establishing a pool of reserve currencies was developed by central banks and finance ministries of the BRICS countries in June 2012. With the total reserve size of 100 billion dollars, Brazil, India and Russia contribute 18 billion, China's share is 41 billion, South Africa`s share is 5 billion.

The pool of reserve currencies was designed to provide emergency financial assistance to one of the five countries, if its general government deficit exceeds the threshold limit. The reserve must be managed by the Governing Council, the Standing Committee and a coordinator, the functions of which will be performed by the presiding country of the BRICS. Currently, it is headed by Russia.

In addition to the pool of reserve currencies, the BRICS countries are planning to establish another financial structure – the Development Bank. This interstate credit institution has the capital of the same size - $ 100 billion. But these funds are intended to finance future projects. The draft on its establishment is already in the lower house of the Russian parliament.

Text by Lenta.ru

Pictures by AP