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BRICS Bank & AIIB to strengthen global financial system - Putin

BRICS Bank & AIIB to strengthen global financial system - Putin
The BRICS New Development Bank and China’s Asian Infrastructure Investment Bank will contribute to the strengthening and stability of the global financial system, according to Russian President Vladimir Putin.

"Russia is actively participating in the work of the new financial institutions – the BRICS Bank and the Asian Infrastructure Investment Bank. I am sure their activities will help to develop the Asia-Pacific region and will also help to strengthen the global financial system and make it more stable," Putin wrote in an article ahead of the Asia-Pacific Economic Cooperation (APEC) summit in the Philippines.

The President added that Russia is doing its best to establish a proper business environment. Those efforts have already been acknowledged, according to Putin, as over the last four years Russia jumped 69 positions in the World Bank’s “Doing Business” rating, from the 120th place to 51st.

READ MORE: AIIB and BRICS bank not rivals but complementary – economy minister

The BRICS New Development Bank (NDB) was established by the five member states – Brazil, Russia, India, China and South Africa – in 2014. Its main goal is to promote sustainable development in BRICS countries. In July the bank opened in Shanghai with startup capital of $50 billion.

The China-led Asian Infrastructure Investment Bank (AIIB) was launched in October 2014 and has 57 countries as its founding members from Asia, Europe, Latin America, Africa and Oceania. The bank will finance infrastructure projects in the Asia-Pacific Region, such as roads, railways, and airports. China has 20.06 percent of the voting share and India 7.5 percent. Russia has the third largest stake with 5.92 percent. The initial capital of the AIIB will be $50 billion and is expected to be increased to $100 billion. The headquarters will be located in Beijing.