BRICS development bank on the lines of WB, IMF

Durban (PTI): In a major move aimed at reforming the global financial architecture, the BRICS finance ministers today agreed on the setting up of a development bank to fund infrastructure and development projects in the five-nation grouping of emerging powers. "We are reporting to the Heads (of governments) that the BRICS bank is feasible and viable," Finance Minister P Chidambaram said after a meeting with his counterparts from Brazil, Russia, China and host South Africa in this port city. The agreement came after weeks of negotiations among the five emerging economies in a move aimed at changing the rules of governance in global governance, especially the Bretton Woods institutions like the World Bank and International Monetary Fund. The summit formally opened tonight with a cultural programme and a dinner hosted by South African President Jacob Zuma but main discussions will be held on Wednesday. A A 'Durban Declaration' will be released at the end of the summit. Senior Indian negotiators have said that the BRICS bank initiative will be cleared at the level of the heads of government when the summit adopts the report of the finance ministers. Issues including capital, membership and governance still dog the BRICS bank over which a final document may get ready by next year. Still it may take years before it finally gets going, Indian sources said.