BRICS agree on bank's structure, progress difficult -Russia

Sun Sep 1, 2013 4:00pm EDT
 
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* BRICS development bank to have $50 bln capital

* Russia says may take months to set up bank

* BRICS struggle to take coordinated action

By Lidia Kelly and Alonso Soto

MOSCOW/BRASILIA, Sept 2 (Reuters) - The BRICS bloc of large, emerging economies has agreed on the structure of a proposed development bank with $50 billion in capital, but ironing out "difficult" details may take months, Russian Deputy Finance Minister Sergei Storchak said.

Officials from Brazil, China, India, Russia and South Africa agreed in early August that the bank's capital should come from three payment categories, including subscriptions, Storchak told journalists in remarks for publication on Monday.

The establishment of the development bank aimed at providing funds for infrastructure projects has been slow in coming, with prolonged disagreement over funding and management of the institution.

"We must assume that the bank will not start functioning as fast as one could imagine," Storchak said. "It will take months, maybe a year."

At the summit of the Group of 20 developed and developing nations this week in Russia's St. Petersburg, BRICS leaders will meet in an unofficial format, Storchak said, to discuss the progress on setting up the bank and a joint reserve fund.   Continued...