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      BRICS development bank good for global recovery

      2014-07-17 08:11 Xinhua Web Editor: Qin Dexing
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      The development bank initiated by BRICS will stimulate global economic recovery and drive up long-term growth, China's Ministry of Finance said on Wednesday.[Special coverage]

      The new development bank will supplement current regional development banks in infrastructure investment and sustainable development and give a bigger say to BRICS and emerging economies in international economic fairs, the ministry said in a statement on its website.

      The five members of the group, Brazil, Russia, India, China and South Africa, laid out the plans for the bank on Tuesday following their sixth summit in Brazil.

      The bank, to be headquartered in Shanghai, is aimed at "mobilizing resources for infrastructure and sustainable development projects in BRICS and other emerging and developing economies."

      A contingent reserve arrangement (CRA) was also included in the declaration with an initial size of 100 billion dollars

      The CRA is an attempt to create a collective financial security network to face global challenges, China's central bank said, noting it will improve market confidence and facilitate global financial stability.

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