I know the BRICS cabel has been mentioned here but ran across the while looking at Journal Do Brasil.

The news is spreading...



Google Translation which is not too bad....

The Bank of New Development of the Brics, as it is called during the negotiations, and the Contingent Booking Agreement are the two most mature mechanisms that resulted from conversations between Brazil, South Africa, India, China and Russia. The agreements are still being discussed, but can now be signed at the 6th Summit of BRICS, scheduled for the 15th and 16th of July, at the Events Center of Ceará.

As presented Ambassador Carlos Cozendey, Secretary of International Affairs of the Ministry of Finance during the BRICs in the 21st Century Conference, held this week by Coppe / UFRJ and Intersul in Rio de Janeiro, the field of cooperation between the countries of the group has been expanding enough and the two most significant and mature ideas would be the creation of the database and the booking agreement. Cozendey is representative of Brazil in missions to the World Trade Organization Doha Round, G8, European Union and Mercosur.

"Each of the BRIC countries intend to be one of the poles of this new multipolar world economy. One can not expect that at some point some spokesman Brics, Brics or a country speaking on behalf of others, or that the BRICs will act unequivocally on all agenda items there. While start gathering, arranging new ideas will enjoy this cooperation. This field of cooperation has expanded a lot, "explained Cozendey.

The ambassador took the opportunity to clarify that the contingent Booking Agreement has been called the Reserve Fund BRIC but not exactly set as a background. This implies an investment of resources held in common, which shall be administered and used according to the constitution. The International Monetary Fund, for example, receives part of the reserve of countries for application, and these resources are transferred as loans as necessary .

In the case of the BRICs, however, is another model, created in Asia, whereby the central banks do not spend its reserves to a common manager, continue with them and only commit to a quota, if any participants have difficulty and need of short-term loan. The resource is in final negotiations, will be ratified in Congress, and, once ratified, becomes fully operational.

"This makes the agreement is relatively simple, because there is no need to discuss the creation of a secretariat complex, or an entity capable of managing these resources. In reality, the deal comes down to defining what are the commitments of each country and to establish the mechanisms of decision in case you need any of them, "he explained.

So far, according to the ambassador, the assigned values ​​are all in dollars, for a total of $ 100 billion - will go to China with $ 41 billion, with the possibility of using the same value; Brazil, Russia and India are committed to $ 18 billion, may resort to U.S. $ 27 billion each; and, finally, Africa is responsible for $ 5 billion, with the right to request $ 10 billion loan.

"This mechanism was thought at the time of European crisis, between 2011 and 2012, in which they discussed the very issue of having some mechanism of defense," said Cozendey. "You can not say it is a revolution, a change of regime. It's actually something inside the existing regime. But somehow strengthens the position of the BRICS countries. "

The New BRICS Development Bank, meanwhile, is still under negotiation, but this can be closed now until the next summit in July. When, unlike the contingency reserve, deals with a more complex structure, requiring administration, management, secretariat, among other requirements. Second, Cozendey, should come into operation within two or three years. The name of the bank, to finance infrastructure and sustainable development, also remains unclear.

The goal, set in the Durban Summit, is to have a seat facing the projects to be funded. The subscribed capital would be $ S 50 billion initially, and the authorized capital of $ 100 billion, signaling that capital can increase or that the bank will receive new members. Most of the Brics capital, however, would be preserved.

"The Bank operates as a corporation, as the World Bank, so anyone who puts more capital in the bank sends more. Brazil's proposal, which is the majority proposal, is that the original proposal to be distributed equally, $ 10 billion for each, "said Cozendey.

There are four candidate cities for the headquarters of the Bank - Shanghai, Johannesburg, Moscow, New Delhi. The proposals are being examined by the countries and is one of the elements of the final discussion. He may meet with loans, guarantees or equity investments in investment.