A consensus has been achieved between BRICS countries Brazil, Russia, India, China and South Africa on many key aspects and operational details on establishment of Contingent Reserve Arrangement,CRA.
The consensus emerged following an informal meeting between the heads of states in St.Petersburg, Russia ahead of G-20 summit that began this evening. The external affairs ministry official told media persons that as agreed in Durban, the CRA will have an initial size of 100 billion dollars. The individual commitments to the CRA will be that of 41 billion dollars from China while Brazil, India, and Russia will contribute 18 billion dollars each; and South Africa, 5 billion dollars.
The Leaders noted the continued slow pace of the recovery, high unemployment in some countries, and on-going challenges and vulnerabilities in the global economy, particularly in advanced economies. They believe that major economies, including G20, could do more to boost global demand and market confidence.
In light of the increase in financial market and capital flow volatility during recent months, the BRICS Leaders reiterated their concerns they had expressed in the Durban Summit in March, regarding the unintended negative spillovers of unconventional monetary policies of certain developed economies. They emphasized that the eventual normalization of monetary policies needs to be effectively and carefully calibrated and clearly communicated.
BRICS Leaders also expressed their concern with the stalling of the International Monetary Fund reform process. They recalled the urgent need to implement the 2010 IMF Quota and Governance Reform, as well as to complete the next general quota review by January 2014 as agreed at the G20 Seoul Summit in order ensure the Fund’s credibility, legitimacy and effectiveness.
The Leaders look forward to the 9th World Trade Organisation’s Ministerial conference to be held in December 2013, and expect that it will be a stepping stone to the successful and balanced conclusion of the Doha Development Round.
The Leaders of Brazil, India, China and South Africa congratulated Russia for the successful Presidency of the G20 in 2013 and appreciated the emphasis by the Russian Presidency on the development agenda.
The Leaders welcomed the good progress made towards the establishment of the BRICS-led New Development Bank (NDB) and the Contingent Reserve Arrangement (CRA).
On the NDB, progress has been made in negotiating its capital structure, membership, shareholding and governance. The Bank will have an initial subscribed capital of 50 billion US Dollars from the BRICS countries.
