Tokyo: Finance Minister P Chidambaram Monday said the proposed BRICS Bank to finance development projects in emerging economies will not compete but complement the operations of the existing multilateral lending agencies.
Addressing a conference at the Japan National Press Club here, Chidambaram said though the existing lending agencies have provided funds to developing nations, it has been insufficient.
He said if the BRICS development bank is established, it would "complement" what multilateral lenders have been doing, news agency Kyodo said.
Last week, the grouping of Brazil, Russia, India, China and South Africa (BRICS) had decided to establish a new development bank to finance infrastructure projects and to create a USD 100 billion contingency fund to tackle any financial crisis in emerging economies.
The decision is seen as a major win for India's campaign to reform global financial architecture.
The development bank, mooted by India at the last year's Summit in Delhi, was originally proposed to be started with a capital of USD 50 billion with USD 10 billion from each of the members.
Developing countries have been demanding more assistance from multilateral agencies like World Bank, IMF and ADB to
Chidambaram also emphasised that the Manila headquartered Asian Development Bank (ADB) "must lend more" to the developing countries especially for infrastructure and sustainable development.
First Published: Monday, April 1, 2013, 22:26