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Brazil: Bloc Creates Development Bank

(Mar. 29, 2013) On March 26, 2013,the BRICS bloc announced that its members had reached an agreement to create a development bank to finance infrastructure projects. The announcement was made during a meeting in Durban, South Africa, where the bloc, which consists of Brazil, Russia, India, China, and South Africa, discussed how to maintain growth in the midst of the global economic crisis. (Luciano Nascimento, Brics Fecha Acordo para Criar Banco do Grupo, AGÊNCIA BRASIL (Mar. 26, 2013).)

The new bank will finance a group of emerging countries, focusing on the financing of infrastructure, much like the World Bank does. It is expected that each state that is a member of the bloc will contribute the equivalent of US$10 billion to help launch the bank. The bloc also discussed the creation of a fund of approximately US$100 billion to help countries facing financial problems. (Id.)