RIO DE JANEIRO, June 30 (Xinhua) — The BRICS Contingency Fund, initiated by Brazil,Russia, India, China and South Africa (BRICS), will be operational in 30 days, the Brazilian Foreign Ministry said on Tuesday.
According to the ministry, all members have now ratified their participation in the agreement.
The Fund aims to be an alternative to the BRICS nations if they ever find themselves in need of quick funds in a crisis and will amount to 100 billion U.S. dollars.
All five member countries are contributing to the Fund, with China being the leading contributor with 41 billion U.S. dollars, Brazil, Russia and India with 18 billion dollars each, and South Africa with 5 billion dollars.
“The agreement aims to provide temporary resources to BRICS members facing pressure in their balance of payments. This instrument will contribute to promoting international financial stability, as it will complement the current global network of financial protection,” the ministry said.
“It will also reinforce the world’s economic and financial agents’ trust and mitigate the risk of contagion from eventual shocks which may come to affect the economies of the bloc,” it said.
Last year, during its sixth summit in Brazil, BRICS announced the creation of the BRICS Development Bank and of the BRICS Contingency Fund.
According to the Brazilian Foreign Ministry, the process of ratification of the member countries’ participation in the bank is about to end as well, which means the bank is closer to becoming operational.