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Rediff.com  » Business » IMF welcomes establishment of BRICS bank

IMF welcomes establishment of BRICS bank

July 17, 2014 10:27 IST

BRICSThe International Monetary Fund has welcomed the move to set up a new BRICS development bank stating that it is ready to work with the Bank's leadership.

"I would like to congratulate you on hosting a successful meeting of the BRICS leaders in Fortaleza, Brazil, and especially on establishing the Contingent Reserve Arrangement," IMF Managing Director Christine Lagarde said in a message conveyed to the Brazilian President Dilma Rousseff.

IMF staff would be delighted to work with the BRICS team dedicated to this project with a view to reinforcing the cooperation among all parts of the international safety net intended to preserve financial stability in the world, she said.

"The IMF has a very strong relationship with all the BRICS nations, which are key members of this institution. We look forward to further strengthening our collaboration," she added.

Meanwhile, the US refrained from making any comment on the move to set up the development bank aimed at reshaping the international financial system dominated by the West, saying that the details are yet to emerge.

"They (BRICS leaders) made an announcement about the plan for the creation of a BRICS development bank.

“There are not a lot of details about the specific focus that this planned development bank would play -- or what the specific focus it would have.

“Many of the important details, including its governance and any relationships with the established international financial institutions aren't clear yet.

“So we'll wait to see what more details emerge," State Department Spokesperson Jen Psaki said.

"I don't think we've seen the details of how it's modelled and obviously, it has to serve a particular role and needs to these countries that works with the other financial institutions that are out there internationally," Psaki said while replying to the question whether the Obama administration would be fine if BRICS bank is modelled after the World Bank.

Lalit K Jha in Washington
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