by pna
Outgoing
World Bank President Robert Zoellick says he will back the proposed BRICS bank desired by the five-member grouping for various reasons, including India's large infrastructure demand.
The bank chief said he favored his organization working with such a
lending agency as with any other development
bank.
He was answering questions at the Boao Forum for Asia in China's Hainan province on the plans of BRICS countries-- Brazil, Russia, India, China and South Africa-- to have a bank of their own.
Zoellick said it is still to be finalized by the Finance Ministers of the five nation bloc, PTI reported.
'It's still at the stage where the Finance Ministers are analyzing it to go forward. As a general principle, my view would be, if the countries want to develop it, then we should work with it,' he said, according to the transcript circulated to the media by the World Bank.
He said it is
important to understand what was driving countries like, Brazil, Russia, India, China and South Africa to have a bank of their own.
'People often jump to an issue and they don't step back and think about what's driving it. In India it's very much a concern that they want more multilateral financing. Their needs for infrastructure financing are very great,' he said.
'They've drawn on the Bank support over years. I think our total outstanding accounts are about USD 38 billion from different sources in India.
Stating that BRICS will face problems like who will head the proposed bank, he said it will help China to further internationalize its currency.
'Now I have to say, forming a bank is not an easy venture. So there'll be some sensitive issues as to who the President of the Bank is, and where it's located, and where the capital will be. It will have to get a rating. We have a AAA rating, which influences your overall financing,' he said.
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