Argentina will likely withdraw its application to join BRICS

Argentina will likely withdraw its application to join BRICS

    Tuesday, November 21, 2023   No comments

With a new president who wants to align Argentina with the US, especially if Trump returns to the White House next year, Argentina is likely to halt its pursuit of joining BRICS.

Diana Mondino, the candidate for Argentine Foreign Minister, relayed to Sputnik after the elections that Argentina will not be joining BRICS.

 “I don’t know why there is such interest in BRICS,” Mondino added.

 Mondino further added that joint collaborations with China and Brazil will stop, despite them being Argentina's main trading partners, as she stressed that the country intends to stay in the South American trade bloc Mercosur.

 It is worth noting that Milei is against joining BRICS.

Earlier in August, Argentina, alongside Egypt, Iran, Ethiopia, UAE, and Saudi Arabia were invited to join BRICS.

Argentinian president Fernandez articulated at the time that Buenos Aires is grappling with an economic crisis with high inflation and weak foreign currency reserves, and was looking to join the bloc.

Meanwhile, BRICS nations meet today in a virtual summit to discuss the crisis in Gaza. After the meeting, the President of South Africa read the final statement of the BRICS countries regarding the situation in the Gaza Strip.

The statement expresses condolences to all those affected in Israel and the Gaza Strip, while also accusing Israel of violating international law. Ramaphosa, states that the primary cause of the conflict is Israel's illegal construction of settlements. The President of South Africa calls for the release of hostages taken during the Palestinian-Israeli conflict — a statement from the BRICS countries. The President of South Africa urges the International Criminal Court to initiate an investigation into those who committed war crimes during the Palestinian-Israeli conflict — a statement from the BRICS countries.

The aftermath of BRICS expansion: The West will warn its Arab Allies who joined the Bloc

The aftermath of BRICS expansion: The West will warn its Arab Allies who joined the Bloc

    Monday, September 04, 2023   No comments

BRICS membership expanded, and with that expansion comes benefits and responsibilities. Among them is closer economic cooperation among member states. This would mean that Russia, the hardest hit country by Western sanctions, and Iran, the second longest hit country by Western sanctions will be able to trade without fear of Western limits. Tow of the Arab nations that joined BRICS recently, Saudi Arabia and UAE, will feel the heat from their Western allies. It already started.

Officials from the US, UK, and EU are planning to “jointly press” the UAE into halting shipments of goods to Russia that "could help Moscow in its war against Ukraine,' according to western officials who spoke with the Wall Street Journal (WSJ).

Several US and European officials started a trip to the Gulf monarchy on 4 September “as part of a collective global push to keep computer chips, electronic components, and other so-called dual-use products” away from Russia.

Western envoys also traveled “jointly and separately” to countries such as Turkiye and Kazakhstan to pressure authorities into preventing western dual-use products from reaching Russia.

Despite ongoing pressure from the west, Abu Dhabi has not enforced sanctions imposed on Russia, instead deepening cooperation with the Kremlin. Nonetheless, the Gulf nation has condemned the invasion of Ukraine at the UN several times, and an Emirati official told the WSJ that the country enforces UN-imposed sanctions on Russia.

The official added the Gulf state is monitoring the export of dual-use products and is committed to protecting “the integrity of the global financial system.”

In response to the position taken by the UAE, US officials publicly labeled the UAE "a country of focus" earlier this year as they look to clamp down on Russia's ties with independent nations.

Dubai, in particular, has reaped the benefits of the Emirati government's neutrality, as Russian nationals have become the largest buying group of real estate in the luxurious Emirate, which has also become a hub for Russian oil traders.

The new pressure campaign from the west comes less than two weeks after the UAE was officially invited to join the Russian and Chinese-led BRICS+ group of nations. The expanded bloc also pledged to help Africa develop its local economy through investments by member states who have the cash and loans from the New Development Bank (BRICS bank). UAE, a country with cash that need to be invested, is taking advantage of this new opportunity.

The UAE pledged $4.5 billion in clean energy investments for the African continent on 5 September during the second day of the three-day African Climate Summit held in the Kenyan capital, Nairobi.

“We will deploy $4.5 billion … to jumpstart a pipeline of bankable clean energy projects in this very important continent,” Sultan Ahmed al-Jaber, the head of state-owned renewable energy firm Masdar and the Emirati national oil company ADNOC, told attendees on Tuesday.

“If Africa loses, we all lose,” warned Jaber, adding that the investment aims “to develop 15 GW (gigawatts) of clean power by 2030” and “catalyze at least an additional $12.5 billion from multilateral, public and private sources.”

Jaber, who is also president of the upcoming COP28 climate summit to be hosted by the UAE, said a consortium including Masdar would help achieve the clean power goals and stressed that a “surgical intervention of the global financial architecture that was built for a different era” is needed, urging institutions to lower debt burdens.

According to the International Renewable Energy Agency (IREA), Africa’s renewable generation capacity was 56 GW in 2022. Despite possessing an abundance of natural resources, just 3 percent of energy investments worldwide are made in Africa.

The three-day climate summit in Nairobi has attracted heads of state, government, and industry, including UN head Antonio Guterres, EU chief Ursula von der Leyen, and US climate envoy John Kerry.

“Renewable energy could be the African miracle, but we must make it happen,” Guterres told the summit on Monday. He also addressed the member states of the G20 to “assume your responsibilities” in the battle to combat climate catastrophe.

Kenyan President William Ruto said trillions of dollars in “green investment opportunities” would be needed as the climate crisis accelerates.

“Africa holds the key to accelerating decarbonization of the global economy. We are not just a continent rich in resources. We are a powerhouse of untapped potential, eager to engage and fairly compete in the global markets,” Ruto said.

Abu Dhabi sealed a deal with Egypt in June to build Africa's largest wind farm as the nation looks to rapidly expand the use of clean energy abroad and at home, where it operates three nuclear power reactors. The UAE also has three of the world's largest and lowest-cost solar plants. 

This focus on clean energy is part of the UAE’s Net Zero by 2050 Strategic Initiative.

The development of renewable energy sources has recently become a priority for Gulf states, including Saudi Arabia, which plans to source 50 percent of its energy requirements from renewables by 2030.

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Including Iran and Saudi Arabia.. 6 new countries join as full members of the "BRICS"

Including Iran and Saudi Arabia.. 6 new countries join as full members of the "BRICS"

    Thursday, August 24, 2023   No comments

Today, Thursday, 6 countries joined as full members of the "BRICS" group, namely Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE.

The Final declaration states:

91. We have decided to invite the Argentine Republic, the Arab Republic of Egypt, the Federal Democratic Republic of Ethiopia, the Islamic Republic of Iran, the Kingdom of Saudi Arabia and the United Arab Emirates to become full members of BRICS from 1 January 2024.  

In the details, South African President Cyril Ramaphosa said, during his participation in the activities of the third day of the "BRICS" group, that his country had agreed to join Argentina, Egypt, Ethiopia, Iran, Saudi Arabia and the UAE as full members.

For his part, Russian President Vladimir Putin congratulated the new countries, saying: "I congratulate the new members of BRICS, and we promise the other members who wish to join, to open the door for them at the next summit."

Putin added, "It was a rich and important summit, and I congratulate all heads of state on the spirit of cooperation," calling for more cooperation, solidarity, and work towards development.

Indian Prime Minister Narendra Modi said that India supports the development and expansion of BRICS.

Modi pointed out that the development of the group is "a message that the whole world must hear," and it is an example of the amendments that must be made in various institutions.

In turn, Chinese President Xi Jinping said that the BRICS countries "have great influence and are responsible for establishing peace and stability in the world."

He also congratulated the countries that joined the "BRICS" and that made their decision to deal with developed and emerging countries, according to him.

During the speeches of the leaders of the countries at the closing session of the "BRICS" summit, Brazilian President Lula da Silva said that there is a one-sided world that threatens diversity and pluralism.

Lula added that the world is suffering from economic recession and lack of food security, saying: "We seek to reach a more just world."

For his part, the President of the UAE, Mohammed bin Zayed Al Nahyan, expressed his appreciation for the BRICS group's agreement to include his country in the group.

Bin Zayed said, in a tweet on the "X" platform, "We appreciate the agreement of the leaders of the BRICS group to include the United Arab Emirates in this important group."

He continued, "We look forward to working together for the prosperity and benefit of all countries and peoples of the world."

Iranian President Ebrahim Raisi confirmed today, Thursday, that "the expansion of the BRICS group shows that the unilateral approach is on its way to disappearing."

Raisi, during his meeting with his Chinese counterpart Xi Jinping, stressed that Iran's accession to the "BRICS" group would strengthen the bloc's opposition to American hegemony.

In a speech at the conclusion of the 15th BRICS summit, Raisi affirmed that Tehran supports the group's efforts to abandon the dollar in financial transactions, adding that "BRICS opens new horizons, and it is a way towards building a multipolar world."

Likewise, the Iranian president praised the decision of BRICS members to expand the group, which "provides grounds for continuing international development in a more equitable manner."

In his speech, the Iranian president reiterated his country's rejection of "all discriminatory and racist policies by the Israeli occupation against the Palestinian people."

For his part, Chinese President Xi Jinping said that his country is "ready to strengthen cooperation with Iran, within the framework of the BRICS group and other multilateral blocs."

On the sidelines of a BRICS leaders' summit in South Africa, Xi told Raisi that Beijing "is willing to strengthen friendship and deepen mutual trust with the Iranian side, and continue to support each other on issues of common core interests."

Another senior Iranian official welcomed his country's admission to the "BRICS" group of emerging countries, which so far includes Brazil, Russia, India, China and South Africa, describing it as a "strategic success" for its foreign policy.

"Permanent membership in the Global Emerging Economies Group is a historic event and a strategic success for the Islamic Republic's foreign policy," Mohammad Jamshidi, political advisor to Iranian President Ebrahim Raisi, wrote on the X platform.

For his part, Ethiopian Prime Minister Abiy Ahmed praised the BRICS announcement of his country's accession to the group.

"This is a great moment for Ethiopia as BRICS leaders endorse us joining this group today," Abiy Ahmed said on X, formerly known as Twitter.

He added that his country is ready to cooperate with everyone for a comprehensive and prosperous world order.

The activities of the fifteenth international meeting of the BRICS 2023 summit began on Tuesday in Johannesburg, South Africa.

Yesterday, the leaders of the "BRICS" summit declared, in its second meeting, its firm stand against hegemony and neo-colonialism.

The leaders of 4 countries are participating in the summit personally, and they are Chinese President Xi Jinping, Brazilian President Lula da Silva, Indian Prime Minister Narendra Modi, and South African President Cyril Ramaphosa, while Russian President Vladimir Putin participates, via video technology, while the Russian delegation is headed. Participant in the summit, Foreign Minister Sergey Lavrov.

The announcement of the final statement of the “BRICS” summit … details affecting the United Nations and the Security Council to give more democracy and effectiveness to the organization

In their closing statement issued today, Thursday, the BRICS leaders expressed concern about the use of unilateral measures that negatively affect developing countries.

The BRICS leaders supported reforms in the United Nations, including the Security Council, in order to make the organization more democratic and effective.

The text of the final statement following the summit currently held in Johannesburg, South Africa, stated: “We express our concern about the use of unilateral coercive measures, which are inconsistent with the principles of the United Nations Charter and lead to negative consequences, especially in developing countries.”

He added, “We reaffirm our commitment to strengthening and improving global governance by promoting a more flexible, effective and efficient system … a democratic and accountable multilateral international system.”

According to the declaration: “We call for increased participation of emerging markets and developing countries in international organizations and multilateral forums.”

According to the declaration, the BRICS countries support the continuation of cooperation within the bloc to enhance the interconnection of supply chains and payment systems.

And the statement continued: “We reaffirm that openness, efficiency, stability and reliability are essential to addressing economic recovery and stimulating international trade and investment. We call for more cooperation between the BRICS countries to enhance the interconnection between supply chains and payment systems in order to stimulate trade and investment flows.

"The leaders of the BRICS group reaffirm their support for the establishment of an open and fair international trade system based on the rules of the World Trade Organization," the statement said.

In the statement, BRICS stressed the need to solve the Iranian nuclear problem through peaceful and diplomatic means, and in accordance with international law.

The statement added, "We call for strengthening arms control and non-proliferation, including the Convention on the Prohibition of the Development, Production and Stockpiling of Bacteriological (Biological) and Toxin Weapons and on Their Destruction, and the Convention on the Prohibition of the Development, Production, Stockpiling and Use of Chemical Weapons and on Their Destruction."

“We stress the importance of encouraging the use of national currencies in international trade and financial transactions, whether within the BRICS countries or with trading partners,” the statement said.

The statement added: “We call on the space agencies of the BRICS countries to continue to increase the level of cooperation in the field of exchanging data via satellites and their applications in order to provide information support for the economic and social development of the BRICS countries.”

And the statement continued: “We recall our national positions regarding the conflict in and around Ukraine, which were expressed in relevant forums, including the UN Security Council and the UN General Assembly. We note with appreciation the offers of mediation and the special good offices in this matter aimed at resolving the conflict by peaceful means through dialogue and diplomacy, including the peace mission undertaken by African leaders, and the proposed path to peace.

"Recognizing that BRICS countries produce a third of the world's food, we reaffirm our commitment to strengthening cooperation in agriculture and developing sustainable agriculture for BRICS countries to improve food security within BRICS countries and around the world," the statement added.

According to the statement: “BRICS countries appreciate the great interest shown by the countries of the Global South in BRICS membership.”

"We stress the need to help countries going through the post-conflict stage for recovery and development, and we call on the international community to help countries achieve their development goals," the statement said.

The document stated that “Brazil, India, China and South Africa express their full support for Russia, regarding its presidency of the “BRICS” group, in 2024, and the holding of the sixteenth “BRICS” summit in the Russian city of Kazan.

Algerian President Abdelmadjid Tebboune: Algeria had submitted an official request to join the BRICS group

Algerian President Abdelmadjid Tebboune: Algeria had submitted an official request to join the BRICS group

    Sunday, July 23, 2023   No comments

On Friday, the Algerian “An-Nahar” TV quoted the Algerian President, Abdelmadjid Tebboune, as saying that Algeria has submitted an official request to join the “BRICS” group, and that it will become a shareholder in the “BRICS” bank, with an amount of $ 1.5 billion.

Tebboune said, "Algeria has officially asked the president of the BRICS bank, Dilma Rousseff, to agree to be a shareholder in the bloc's bank," noting that "Algeria's first contribution will be $1.5 billion."

Earlier, Tebboune considered that his country's accession to the "BRICS" group would help it in development, more than the assistance of international financial bodies, adding that "the BRICS bank contains $100 billion, more than the World Bank."

Likewise, Tebboune said, on December 22, 2022, that "Algeria is close to joining the BRICS bloc," stressing that the BRICS countries will not mind granting Algeria full membership, and that they have approval from Russia.

The North African country, which is rich in oil and gas, seeks to diversify its economy and strengthen its partnership with countries such as China. Tebboune announced, during his visit to Beijing, that China will invest $36 billion in various fields in his country, including industry, modern technology, the knowledge economy, transportation, and agriculture.

In turn, a South African diplomat said, yesterday, Thursday, that 22 countries have submitted an official request to become members of the "BRICS" economic bloc, adding that countries, including Saudi Arabia and Iran, have officially requested to become members of the "BRICS" group, while the countries that have expressed interest in joining include Argentina, the Emirates, Algeria, Egypt, Bahrain and Indonesia.

Report: The new "BRICS" currency poses a threat to the West

Report: The new "BRICS" currency poses a threat to the West

    Monday, June 05, 2023   No comments

Russian Finance Minister Anton Siluanov said that instead of considering the BRICS currency as an alternative currency, "we will initially work to settle trade between the BRICS countries, and this could, in theory, create conditions for stronger monetary relations between the member states," according to UNHERD website.

The BRICS countries call for a “rebalancing” of the global system.. and Lavrov confirms the discussion of the issue of Saudi Arabia’s acceptance of the alliance

The BRICS countries call for a “rebalancing” of the global system.. and Lavrov confirms the discussion of the issue of Saudi Arabia’s acceptance of the alliance

    Thursday, June 01, 2023   No comments

The foreign ministers of the BRICS countries, who met Thursday in the Cape, before a summit scheduled for August, whose preparations are dominated by the question of whether Vladimir Putin will come to South Africa or not, called for a "rebalancing" of the global system.

The BRICS countries include South Africa, Brazil, China, India and Russia.

Indian Foreign Minister Subrahmanyam Jaishankar said at the start of the meeting, "The multipolar world is rebalancing and the old methods cannot handle the new situations."

For her part, South African Foreign Minister Naledi Pandor said, "Our discussions today will focus on opportunities to strengthen and transform global governance systems."

Pretoria has long called for the BRICS countries to create balance in a world system dominated by the West.

In response to a question by journalists about the Russian president's attendance at the summit in August, the minister confirmed that "an invitation was extended to each of the five heads of state."

Pandor added that the South African government, which has not taken a position on the possible arrest of the Russian president, is studying "legal options."

Putin has been issued an arrest warrant by the International Criminal Court for the "deportation" of Ukrainian children as part of Moscow's attack on Ukraine.

In theory, as a member of the International Criminal Court, South Africa is supposed to arrest the Russian president if he enters its territory. But the two countries maintain close relations.

Pretoria refuses to condemn Moscow since the start of the war on Ukraine, stressing that it takes a neutral position and prefers dialogue to resolve the crisis, which raises concern in the international arena.

In April, South African President Cyril Ramaphosa said the International Criminal Court's arrest warrant for Putin put South Africa "in a difficult position".

This week, the South African government granted diplomatic immunity to officials who attended the BRICS summit, saying it was standard procedure for organizing international conferences.

On the other hand, Russian Foreign Minister Sergey Lavrov announced today, Thursday, that the issue of accepting Saudi Arabia into the BRICS alliance had already been discussed.

Lavrov told reporters, after a meeting of the BRICS Council of Foreign Ministers, that the foreign ministers of the BRICS countries had already discussed the issue of accepting Saudi Arabia into the group.

Russian Deputy Foreign Minister Sergei Ryabkov said earlier today that "the issue of BRICS expansion will be discussed" during the ministerial meeting in Cape Town.

"There are many strong candidates to join BRICS, and Saudi Arabia is one of them," Ryabkov added.

He continued, "We support their candidacy unconditionally, and will do everything we can to ensure that the process of developing criteria for accepting new members is not delayed."

Russian President Vladimir Putin had previously announced that Russia would continue to develop relations with the Kingdom of Saudi Arabia at the bilateral and multilateral levels, indicating that Moscow supports Riyadh's accession to the BRICS alliance.

During the last summit (2022), Argentina and Iran formally submitted their applications to join BRICS, a move strongly supported by Russia and China.

And the “BRICS” group is a bloc that includes Russia, China, Brazil, South Africa and India. It was founded in 2006, at a summit hosted by the Russian city of Yekaterinburg, and its name changed from “BRICS” to BRICS in 2011, after South Africa joined it. This international group aims to increase economic relations. between them in local currencies, which reduces dependence on the dollar.

Comparing economic indicators for countries associated with BRICS and the G7

Comparing economic indicators for countries associated with BRICS and the G7

    Saturday, May 20, 2023   No comments

Economic data showed that "the BRICS economy has surpassed that of the Group of Seven."

The data indicated that "the Group of Seven, 30 years ago, was 2.5 times larger than the BRICS group, in terms of gross domestic product," while now, "the BRICS have surpassed the former colonial powers that make up the Group of Seven."

Economic analysts pointed out that this data may "answer what these powers are trying to stop, namely China, because it constitutes the largest part of the BRICS economy," as China is equivalent in terms of gross domestic product in US dollars to 6 countries from the Group of Seven.

In other words, China's GDP is equal to that of Germany, Japan, the United Kingdom, France, Italy and Canada combined.

In other interesting data on the share of international powers in global GDP since 1980, the third chart below shows that the United States has been on its share since 1980: no loss, no gain.

The data also shows that developing countries are also unchanged, while Europe, the Organization for Co-operation and Development and developed countries, except for the United States, are the biggest losers. As for China, its share has grown tenfold, to become the biggest gainer.

Earlier, Joseph W. Sullivan, senior advisor to the "Lindsey Group" and economist at the White House Council of Economic Advisers, said during the administration of former US President Donald Trump, that "the BRICS currency could shake the dominance of the dollar, and the moment of de-dollarization may have arrived." finally".

In his interview with the American newspaper "Foreign Policy", Sullivan added that in New Delhi, Alexander Babakov, deputy speaker of the Russian State Duma, said that "Russia is now leading the development of a new currency, which will be used for cross-border trade by the" BRICS "Brazil, Russia, India and China." and South Africa".

And based on the economy, at least, the prospects for the success of the currency issued by the “BRICS” group are contained, according to “Force Policy”, and although many practical questions remain unanswered, such a currency could expel the US dollar as a reserve currency for its members. "BRICS", and shook the position of the dollar from its throne.

Naldi Pandor, South African Foreign Minister, has said that the creation of a new BRICS currency will be a major item on the agenda of the upcoming "BRICS" summit, in Johannesburg on August 22.

Countries that have applied to join the BRICS:

At the moment, BRICS consists of Brazil, Russia, India, China, and South Africa.

Applications to join came from:

— Algiers,

— Argentina,

— Afghanistan,

— Bangladesh,

— Bahrain,

— Belarus,

— Venezuela,

— Egypt,

— Zimbabwe,

— Indonesia,

— Iran,

— Kazakhstan,

— Mexico,

— Nigeria,

— Nicaragua,

— UAE,

— Pakistan,

— Saudi Arabia,

— Senegal,

— Syria,

— Sudan,

— Thailand,

— Tunisia,

— Türkiye, and

— Uruguay.

*****

 Monetary Fund and the World Bank

Currently, the “BRICS” group occupies an important position in the global scene, as its member states enjoy increasing economic power and international influence. The group enhances cooperation and trade exchange between its member states, and seeks to increase its voice and influence in global affairs.

  The BRICS group is facing challenges in promoting economic and political cooperation among member states, but it is a strong alternative to the traditional global economic system.

According to the latest widespread data, the economic assessment indicates the superiority of the “BRICS” group over the Group of Seven, as the group includes Brazil, Russia, India, China and South Africa, and these member states are emerging economic powers that play a vital role in the global economy. The seven are from Canada, France, Germany, Italy, Japan, the United Kingdom and the United States, as well as the European Union.

It is known that the “BRICS” group is witnessing continuous expansion, as Bangladesh, Egypt and the United Arab Emirates have joined the New Development Bank of the “BRICS” group, and there are several other countries preparing to join as well. This shift confirms the growth of the strength and influence of the “BRICS” group in the global arena, and may pose a challenge to the Group of Seven in the future.

And indications have emerged portending important developments about the future of the “BRICS”, which is the possibility of Mexico joining it, which constitutes a large part of the North American trade bloc (CUSMA). The United States to fair and equal trade competition with global economies on the American frontier.

Currently, the five BRICS countries contribute about 31.5% of global GDP, while the share of the Group of Seven countries drops to 30%. The BRICS countries are expected to exceed 50% of global GDP by 2030, and the proposed expansion will strongly advance this goal.

Previously, 30 years ago, the G7 was 2.5 times larger than the BRICS countries in terms of GDP. However, current data indicates that the BRICS countries have outperformed the former colonial powers of the Group of Seven.

Indeed, China's GDP surpassed that of the United States in 2015 when the economies were compared against a purchasing parity benchmark.

On the other hand, the interests of the BRICS countries are not only limited to trade, but are also rooted in the political belief that the world should be multipolar.

The BRICS group encourages the idea of a global system that includes several political and economic poles, in which its interests are better guaranteed through a balance of power and a multiplicity of partners, rather than a unipolar system in which the United States dominates.

And in 2021, the BRICS countries played an effective role in strengthening and reforming the global multilateral system, as they adopted a joint statement aimed at strengthening and reforming the global system.

  Among the aspects called for in this statement was the need to reform the current Security Council system in the United Nations to be more representative and in line with current global realities. The statement also dealt with many other issues of common concern to the BRICS countries.

According to economic data, China is particularly outperforming in its GDP. China's GDP is equal to a group of countries in the Group of Seven, including Germany, Japan, the United Kingdom, France, Italy, and Canada.

These data reflect the remarkable economic success of the “BRICS” countries, and indicate that China has a major role in achieving this success thanks to the large size of its economy within the BRICS group. China's strong economy enhances the position of the BRICS" as a powerful group and its influence on the global economy is increasing significantly.

However, it should be noted that China's economic supremacy does not necessarily mean that it has completely surpassed the G7 in all economic and political aspects. The Group of Seven still maintains its influence and its important role in international relations and world trade.

China's trade value with three of the four potential BRICS countries exceeds 100 billion US dollars, and its sales reach 416 billion US dollars. Indeed, China's trade alone accounts for more than 90% of the BRICS countries' total trade value in dollar terms. This is attributed to China's economic dominance and its impressive rate of growth.

According to the Chinese government, foreign trade between China and BRICS countries registered a year-on-year growth of 12.1% in the first five months of this year, amounting to about 195.71 billion US dollars. This rate is 3.8 percentage points higher than China's overall growth rate in foreign trade over the same period.

Russia also plays an important and active role inside and outside the BRICS group, with a turnover of about $164 billion. This can be explained by the fact that the BRICS countries are a group that is highly dependent on energy, as their population constitutes more than 40% of the world's population. Thus, net power exporters have a strong position. Russia's strength is based in particular as an energy producer for the "BRICS" countries.

As for India, its trade has recorded a value of 142 billion US dollars among the “BRICS” countries. India enjoys a more balanced trade outcome among the member states, trading equally with all members except China and South Africa, and especially for members with a large Indian diaspora.

And Brazil, it is noticeable that its intra-trade is directed towards Asia, especially China and India, instead of trade with Africa or Russia. This shift may indicate the importance of Asia in Brazil's economic relations and reflects the important role played by China in particular. This means that Asia is an important market for Brazilian products, and may also reflect the shift in Brazil's economic and trade orientation towards emerging markets and the rising economic powers of Asia.

It is noted that there is active trade between South Africa and other "BRICS" countries. Although the South African economy is considered the smallest in size among the “BRICS” partners, trade between India, South Africa, China and South Africa exceeds the trade between India and Russia or Russia and Brazil, and this indicates the existence of important economic relations between South Africa and the rest of the “BRICS” partners . This strong direction of trade reflects South Africa's preference to strengthen relations with the "BRICS" countries and take advantage of the trade and investment opportunities available in these countries.

Ultimately, according to Joseph W. Sullivan, former economist in the administration of US President Donald Trump, the creation of a new BRICS currency is a threat to the dominance of the US dollar and may contribute to the transformation of the world order. He also referred to Russia's efforts to develop a new currency that will be used for trade between the BRICS countries, which include Brazil, Russia, India, China and South Africa.

It is believed that the creation of a new BRICS currency may challenge the US dollar as a reserve currency and may shake its position as a strong global currency. This topic is expected to be part of the agenda of the upcoming BRICS summit in Johannesburg. This step may reflect the desire of some countries to achieve independence and abandon the heavy dependence on the US dollar in international trade and financial relations.

In conclusion, the BRICS countries are superior to the Group of Seven in many important economic indicators. This superiority raises questions about the transformation of economic and geopolitical power in the world? Are we about to see massive shifts in the global economic system? Will the hegemony of traditional Western countries recede and emerging countries will regain their global status?

These results may open the door to questions about the future of reserve currencies and the role of the US dollar as a strong global currency. Could a new BRICS currency emerge that would challenge and shake the US dollar? Will the system of global economic relations be radically modified?

These exciting developments call us to carefully follow the developments of the global economy and monitor the shifts in economic forces.

Why and how is Beijing becoming the Mecca of Geopolitics?

Why and how is Beijing becoming the Mecca of Geopolitics?

    Sunday, April 09, 2023   No comments

Brazilian Foreign Minister Mauro Vieira says Brazilian President Luis Inacio Lulu will meet with his Chinese counterpart in a few days, to exchange views on the war in Ukraine in particular.

Brazilian President Luiz Inacio Lula will head to China on Tuesday, after his visit was postponed due to pneumonia, to restore his country to the international arena.

This official visit of the Brazilian president to his country's largest trading partner was scheduled to take place between March 25 and 31, but doctors recommended that it be postponed due to "mild pneumonia" from which he has now recovered.

On Friday, Lula will meet his counterpart Xi Jinping to "exchange views on the war in Ukraine" in particular, Brazilian Foreign Minister Mauro Vieira told AFP and other international news agencies.

This official visit to China is the fourth for the Brazilian president, who began his third term in January, after being president from 2003 to 2010.

The Brazilian president promised to return his country "to the heart of the new global geopolitics", after the isolation it experienced during the rule of his far-right predecessor, Jair Bolsonaro.

In Beijing, Lula hopes to play again the role of mediator who contributed to reaching the nuclear agreement between Iran and the United States during his second term (2007-2010).

Brazil, like China, refused to impose sanctions on Moscow, and at the end of January it had drawn up a still vague proposal regarding the mediation of several countries in the war in Ukraine.

The Brazilian president said at the time that he was "confident" of the chances of success of this proposal, expressing his hope to "establish" the group of countries after his return from China.

On March 25, Celso Amorim, the Brazilian president's senior adviser on international affairs, met in the Kremlin with Russian President Vladimir Putin and his Foreign Minister Sergey Lavrov, who is visiting Brazil on April 17.

"To say that the doors are open (to peace talks) would be an exaggeration, but to say that they are closed is also not true," Amorim told CNN Brasil, on Monday, when asked about the outcome of the meeting with Putin.

However, the Kremlin ruled out "any prospect of a political settlement" mediated by China, despite the consensus expressed by Putin and his counterpart Xi during the latter's visit to Moscow at the end of March.

Before his meeting with Xi on Friday in Beijing, Lula will head to Shanghai on Thursday to attend the inauguration of former leftist President of Brazil Dilma Rousseff (2011-2016) as head of the New Development Bank, also known as the "BRICS Bank".

In 2006, during his first term, the "BRICS" group of emerging economies was created, which includes Brazil, India, China, Russia and South Africa.

Lula's visit to China will mainly deal with international political issues, as the economic aspect was dealt with a week ago, during the date previously set for the visit, when more than 500 Brazilian company heads, from most of the industrial agricultural sector, traveled to the Asian country.

More than 20 cooperation agreements have been signed, one of which allows their trade deals to be conducted directly, exchanging the yuan for the riyal and vice versa instead of relying on the dollar. Bilateral trade volume reached 150 billion dollars last year, with 89.7 billion dollars of Brazilian exports to China.

On his way back to the country, Lula will head to the UAE on Saturday for a one-day official visit.

Is the visit by Iran’s president to China a relation-repair opportunity or a bilateral strategic summit?

Is the visit by Iran’s president to China a relation-repair opportunity or a bilateral strategic summit?

    Monday, February 13, 2023   No comments

In December of 2022, the Chinese president made a visit to Saudi Arabia, and while meeting with representatives of other GCC members states and representatives of some Arab governments, Xi, out of courtesy, signed GCC statement issued at the conclusion of the gathering. The Chinese president also delivered a speech while attending the Arab-China summit.

The statement, however, contained language of support for the UAE in reaching a negotiated and peaceful solution to the issue of the three islands that Iran considers part of its territory, as well as calling on Iran to seriously engage in negotiations to return to the nuclear agreement.

In response to Xi’s endorsement of the statement, Tehran summoned the Chinese ambassador to Iran, to protest against the statement of the Gulf-Chinese summit, which touched on the status of the Abu Musa, Greater and Lesser Tunbs islands.

China responded immediately. The Chinese foreign ministry issued a clarification saying that the GCC countries and Iran are all China's friends, and neither China-GCC relations nor China-Iran relations are targeted at any third party, Chinese Foreign Ministry Spokesperson Wang Wenbin said in a press briefing. China supports the GCC countries in improving relations with Iran based on the principle of good-neighborly friendship, conducting win-win cooperation with Iran and jointly promoting the development and stability in the Persian Gulf. China is willing to continue to play a constructive role in this regard, Wang said.

China also sent its Vice Prime Minister Hu Chunhua to Tehran on December 13th to try and contain the situation. From there, Chunhua stressed that "China supports Iran's national sovereignty, territorial integrity and national honor, and combats foreign interference."

When the Vice Premier Hu Chunhua met with Raisi in Iranian capital Tehran during the same December visit, Raisi stressed that no matter how the international and regional landscapes change, Iran will remain firmly committed to deepening the comprehensive strategic partnership between the two countries.

On Sunday February12, 2023, the Chinese government announced that, at the invitation of Chinese President Xi Jinping, Iranian President Ebrahim Raisi will pay a state visit to China from Tuesday to Thursday. Later on the same day, the Iranian government confirmed the visit. IRNA, the official news agency of Iran, reported that delegations from both sides are due to sign "cooperation documents,” and that Raisi will also take part in meetings with Chinese businessmen and Iranians living in China.

Chinese media predict that Raisi’s visit will enhance the two countries relations, especially in the context of the major channels that connect the two countries. "Cooperation under the framework of the Belt and Road Initiative and the Shanghai Cooperation Organization will give China and Iran more space for cooperation. It is foreseeable that after this meeting, China-Iran relations will enter a new and higher stage," report the Chinese daily, GT.

Iran, Argentina’s applications to BRICS will further define this block of nations

Iran, Argentina’s applications to BRICS will further define this block of nations

    Tuesday, June 28, 2022   No comments

Will BRICS become BRICSAI soon?

Iran's application to the BRICS, following a similar move by  Argentina,  are now formal. BRICS nation must decide.

China, this year's BRICS' chairmanship, actively supports the mechanism's expansion. China wants like-minded countries to join BRICS, that made Iran a very strong candidate. 

China also wanted a representative government of Muslims, so it approached Pakistan, mostly given its location and its role in the Road and Belt Initiative. India objected to including Pakistan. This strengethened Iran's position even more. 

Now BRICS nations need to decide on specific rules that will govern the expansion of the block of nations.

Being the host country, China engaged with Pakistan prior to the BRICS meetings, where decisions are taken after consultations with all BRICS members, the foreign ministry statement said. 

"We do hope that future engagement of the organization would be based on the principles of inclusivity keeping in view the overall interests of the developing world and in a manner that is devoid of narrow geopolitical considerations," said the statement.

"Regrettably one member blocked Pakistan's participation," The Hindu reported on Monday, citing Pakistan's Foreign Office. 

Read the story as reported in Chinese media

Russian Foreign Minister Sergey Lavrov meets Iranian President Ibrahim Raisi: Russian President Vladimir Putin is counting on holding new meetings with Raisi

Russian Foreign Minister Sergey Lavrov meets Iranian President Ibrahim Raisi: Russian President Vladimir Putin is counting on holding new meetings with Raisi

    Friday, June 24, 2022   No comments

Russian Foreign Minister Sergei Lavrov said today, Wednesday, that Russian President Vladimir Putin is counting on holding new meetings with his Iranian counterpart, Ibrahim Raisi.

At the start of his meeting with the Iranian president in Tehran this evening, Lavrov said: "President Putin asked me to convey to you his warmest greetings and best wishes. He looks forward to new meetings with you."

He noted that the Russian president holds several meetings every day, and they are "primarily related to adapting the economic, social, banking and financial sphere to the realities that are now emerging as a result of the selfish and aggressive policy of the West."

"All countries that are negatively affected by the selfish approach of the United States and its orbiters have an objective need to reshape their economic relations in a way that does not depend on the whims and whims of our Western partners," Lavrov added.

This is Lavrov's first visit during the era of the new Iranian government that was formed last August. The Russian minister visited Tehran in April 2021 and held talks with his Iranian counterpart at the time, Mohammad Javad Zarif.

In related news; Iranian Foreign Minister Hossein Amir Abdollahian announced that President Ebrahim Raisi will participate in the BRICS summit, which will be held in China.

Amir Abdollahian wrote in a tweet on his Twitter account: "The BRICS group of countries promises their great potential and innovative vision to be an effective engine for global development and peace."

The Iranian minister added, "By accepting the invitation of the Chinese president to attend the BRICS Plus summit, Iranian President Ebrahim Raisi, during his participation in the summit, will explain Iran's views and capabilities," stressing that his country is taking advantage of any opportunity in the form of "dynamic diplomacy" to advance its national goals.

Yesterday, the Chinese Foreign Minister welcomed the Iranian President's attendance at the BRICS meeting, expressing his hope that the course of diplomacy and dialogue would lead to an agreement in the Vienna negotiations.

Iran's ambassador to Beijing, Mohammad Keshavarzzadeh, said that a phone call took place between the Foreign Minister and his Chinese counterpart, Wang Yi, indicating that the two sides discussed bilateral and international issues.

And the "BRICS" group saw the light of day in 2006, to form an international alliance in the face of Western domination of the world, and turned into an integrated political and economic group.

Its first summit was held on June 16, 2009, under the name "BRIC", in the Russian city of Yekaterinburg, with the participation of: Brazil, Russia, India and China first, then joined by South Africa in 2010, becoming the name of the International Alliance. BRICS, a word formed and derived from the initial letters of the name of each member state.

The population of the BRICS countries constitutes about 45% of the world's population, and the area of ​​its member states covers more than 39 million square kilometers, which is equivalent to 27% of the total land area.

The size of the BRICS economies exceeds the GDP of the Group of Seven major industrial countries (the United States, Britain, Germany, Japan, France, Canada and Italy).

According to Iranian media reports, Chinese President Xi Jinping as the host of BRICS Summit 2022, has invited President Rayeesi to attend the meeting and deliver a speech on Friday.

Rayeesi will discuss the Islamic Republic's viewpoints on international issues and the development of trade and economic cooperation with other countries at the event, which will be held on Friday.

The meeting will discuss "high-level talks for global development".  

Iran is the only country in West Asia region that has been invited to attend the BRICS+ summit.

BRICS expansion

China proposed expanding the BRICS grouping during a meeting of the bloc’s foreign ministers in May. Though the suggestion was welcomed by other member countries, there have been no official announcements of who the new members might be.

“We can get a sense of which countries might be invited by looking at their position on Ukraine and their voting behaviour regarding the conflict at the United Nations,” Huang said. “Those developing countries who abstained or supported Russia may be recruited to join.”

BRICS nations have expressed concern about Pakistan-based militant groups

BRICS nations have expressed concern about Pakistan-based militant groups

    Tuesday, September 05, 2017   No comments

Pakistan's foreign policy in a nutshell: As long as China is backing us, we don't have to worry about the United States or the rest of the world. And that was exactly the official reaction after US President Donald Trump announced his Afghanistan policy last month, criticizing safe havens for Islamist terrorists on Pakistani soil.

While the Islamic country's politicians and government officials refuted Trump's claims that Pakistan was supporting militant groups near its border with Afghanistan, they heaved a sigh of relief when Chinese officials came to their support against Trump.

Therefore, it was quite natural for Islamabad to expect that the BRICS nations – Brazil, Russia, India, China and South Africa – would not criticize Pakistan-based militant groups during their recently held summit in the Chinese city of Xiamen.

But after Trump's censure, Xi Jinping's China, too, expressed its worry about the jihadi groups that many experts say are Pakistan's proxies in the region.

"We, in this regard, express concern about the security situation in the region and violence caused by the Taliban, 'Islamic State'(IS)..., al Qaeda and its affiliates, including the Eastern Turkistan Islamic Movement, the Islamic Movement of Uzbekistan, the Haqqani Network, Lashkar-e-Taiba, Jaish-e-Mohammad, TTP and Hizb ut-Tahrir," the BRICS leaders said in a joint declaration. read more...

Brazil Condemns Israel Offensive in Gaza, Recalls Ambassador

Brazil Condemns Israel Offensive in Gaza, Recalls Ambassador

    Thursday, July 24, 2014   No comments

On July 10th, just two days after Israel launched Operation Protective Edge (the largest attack on Gaza in several years) President Obama released a statement in which he “reaffirmed Israel’s right to defend itself.” With a death toll now over 550, it is important to look beyond U.S. government sources for information and perspective. Foreign policy among the countries in Latin America conforms to the long-standing, overwhelming international consensus that opposes Israeli aggression and occupation, but it also reflects the region’s “second independence.” Over the last 15 years, most countries in Latin America have increased their ability to pursue a foreign policy agenda separate from the goals of the U.S. State Department. In the vast majority of cases, reactions to the latest hostilities are fundamentally at odds with the U.S. position, but they are also varied: many governments directly criticize Israel, using words like “crimes against humanity” and “genocide” to describe recent events; other official statements limit themselves to calling for a ceasefire and a peaceful resolution to the conflict.

Some of the strongest statements were issued by left-leaning governments in South America, including those of Argentina, Bolivia, Brazil, Chile, Ecuador, Uruguay and Venezuela. The government of Argentina issued a statement “strongly condemn[ing] that Israel -- defying calls by the Security County, by the Secretary General and by the many voices of the international community – has decided to escalate the crisis by launching a ground offensive.” President Evo Morales of Bolivia announced that he had petitioned the United Nations High Commissioner for Human Rights (UNCHR) to consider a case against Israel at the International Court of Justice (ICJ) for “crimes against humanity” and “genocide.” (Bolivia broke diplomatic relations with Israel in 2009 over Israel’s Operation Cast Lead assault on Gaza.) The statement from Brazil reads in part:[1]

The Brazilian Government vehemently condemns the Israeli bombardment of Gaza, with disproportionate use of force, which resulted in more than 230 Palestinians dead, many of them unarmed civilians and children. It equally condemns the firing of rockets and mortars from Gaza into Israel.

read more >>

BRICS' Agreement on the New Development Bank

BRICS' Agreement on the New Development Bank

    Thursday, July 17, 2014   No comments

Agreement on the New Development Bank – Fortaleza, July 15

 Agreement on the New Development Bank

The Governments of the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China and the Republic of South Africa, collectively the BRICS countries,

RECALLING the decision taken in the fourth BRICS Summit in New Delhi in 2012 and subsequently announced in the fifth BRICS Summit in Durban in 2013 to establish a development bank;

RECOGNIZING the work undertaken by the respective finance ministries;

CONVINCED that the establishment of such a Bank would reflect the close relations among the BRICS countries, while providing a powerful instrument for increasing their economic cooperation;

MINDFUL of a context where emerging market economies and developing countries continue to face significant financing constraints to address infrastructure gaps and sustainable development needs;

Have agreed on the establishment of the New Development Bank (NDB), hereinafter referred to as the Bank, which shall operate in accordance with the provisions of the annexed Articles of Agreement, that constitute an integral part of this Agreement. 

Article 1

Purpose and Functions

The Bank shall mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging economies and developing countries, complementing the existing efforts of multilateral and regional financial institutions for global growth and development.

To fulfill its purpose, the Bank shall support public or private projects through loans, guarantees, equity participation and other financial instruments. It shall also cooperate with international organizations and other financial entities, and provide technical assistance for projects to be supported by the Bank.

Article 2

Membership, Voting, Capital and Shares

The founding members of the Bank are the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China and the Republic of South Africa.

The membership shall be open to members of the United Nations, in accordance with the provisions of the Articles of Agreement of the New Development Bank. It shall be open to borrowing and non-borrowing members.

The New Development Bank shall have an initial subscribed capital of US$ 50 billion and an initial authorized capital of US$ 100 billion. The initial subscribed capital shall be equally distributed amongst the founding members. The voting power of each member shall equal its subscribed shares in the capital stock of the Bank.

Article 3

Headquarters, Organization and Management

The Bank will have its Headquarters in Shanghai.

The Bank shall have a Board of Governors, a Board of Directors, a President and Vice-Presidents. The President of the Bank shall be elected from one of the founding members on a rotational basis, and there shall be at least one Vice President from each of the other founding members.

The operations of the Bank shall be conducted in accordance with sound banking principles.

Article 4

Entry into force

This Agreement with its Annex shall enter into force when the instruments of acceptance, ratification or approval have been deposited by all BRICS countries, in accordance with the provisions set forth in the Articles of Agreement of the New Development Bank.

Done in the city of Fortaleza, on the 15th of July of 2014, in a single original in the English language.

ANNEX

ARTICLES OF AGREEMENT OF THE NEW DEVELOPMENT BANK

The Governments of the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China, and the Republic of South Africa (collectively the BRICS countries):

CONSIDERING the importance of closer economic cooperation among the BRICS countries;

RECOGNIZING the importance of providing resources for projects for the promotion of infrastructure and sustainable development in the BRICS countries and other emerging economies and developing countries;

CONVINCED of the necessity of creating a new international financial institution in order to intermediate resources for the above mentioned purposes;

DESIROUS to contribute to an international financial system conducive to economic and social development respectful of the global environment;

HAVE AGREED as follows:

 

Chapter I- Establishment, Purposes, Functions and Headquarters

Article 1 – Establishment

The New Development Bank (hereinafter “the Bank”), established by this Agreement, shall operate in accordance with the following provisions.

Article 2 – Purposes

The purpose of the Bank shall be to mobilize resources for infrastructure and sustainable development projects in BRICS and other emerging market economies and developing countries to complement the existing efforts of multilateral and regional financial institutions for global growth and development.

Article 3 – Functions

To fulfill its purpose, the Bank is authorized to exercise the following functions:

(i)               to utilize resources at its disposal to support infrastructure and sustainable development projects,  public or private, in the BRICS and other emerging market economies and developing countries, through the provision of loans, guarantees, equity participation and other financial instruments;

(ii)             to cooperate as the Bank may deem appropriate, within its mandate, with international organizations, as well as national entities whether public or private, in particular with international financial institutions and national development banks;

(iii)           to provide technical assistance for the preparation and implementation of infrastructure and sustainable development projects to be  supported by the Bank;

(iv)           to support infrastructure and sustainable development projects involving more than one country;

(v)             to establish, or be entrusted with the administration, of Special Funds which are designed to serve its purpose.

Article 4 – Headquarters

a)      The Bank has its headquarters in Shanghai.
b)      The Bank may establish offices necessary for the performance of its functions. The first regional office shall be in Johannesburg.

Chapter II- Membership, Voting, Capital and Shares

Article 5 – Membership

a)     The founding members of the Bank are the Federative Republic of Brazil, the Russian Federation, the Republic of India, the People’s Republic of China, and the Republic of South Africa.

b)     Membership shall be open to members of the United Nations at such times and in accordance with such terms and conditions as the Bank shall determine by a special majority at the Board of Governors.

c)     Membership of the Bank shall be open to borrowing and non-borrowing members.

d)    The Bank may accept, as decided by the Board of Governors, International Financial Institutions as observers at the meetings of the Board of Governors. Countries interested in becoming members may also be invited as observers to these meetings.

Article 6 – Voting

a)     The voting power of each member shall be equal to the number of its subscribed shares in the capital stock of the Bank. In the event of any member failing to pay any part of the amount due in respect of its obligations in relation to paid-in shares under Article 7 of this Agreement, such member shall be unable, for so long as such failure continues, to exercise that percentage of its voting power which corresponds to the percentage which the amount due but unpaid bears to the total amount of paid-in shares subscribed to by that member in the capital stock of the Bank.

b)     Except as otherwise specifically provided for in this Agreement, all matters before the Bank shall be decided by a simple majority of the votes cast. Where provided for in this Agreement, a qualified majority shall be understood as an affirmative vote of two thirds of the total voting power of the members. Where provided for in this Agreement, a special majority shall be understood as an affirmative vote of four of the founding members concurrent with an affirmative vote of two thirds of the total voting power of the members.

c)     In voting in the Board of Governors, each governor shall be entitled to cast the votes of the member country which he represents.

d)    In voting in the Board of Directors each director shall be entitled to cast the number of votes that counted toward his election, which votes need not be cast as a unit.

Article 7 – Authorized and Subscribed Capital

a)     The initial authorized capital of the Bank shall be one hundred billion dollars (US$100,000,000,000). The dollar wherever referred to in this Agreement shall be understood as being the official currency of payment of the United States of America.

b)     The initial authorized capital of the Bank shall be divided into 1,000,000 (one million) shares, having a par value of one hundred thousand dollars (US$ 100,000) each, which shall be available for subscription only by members in accordance with the provisions of this Agreement. The value of 1 (one) share, will also be the minimum amount to be subscribed for participation by a single country.

c)     The initial subscribed capital of the Bank shall be fifty billion dollars (US$50,000,000,000). The subscribed capital stock shall be divided into paid-in shares and callable shares. Shares having an aggregate par value of ten billion dollars (US$10,000,000,000) shall be paid-in shares, and shares having an aggregate par value of forty billion dollars (US$40,000,000,000) shall be callable shares.

d)    An increase of the authorized and subscribed capital stock of the Bank, as well as the proportion between the paid in shares and the callable shares may be decided by the Board of Governors at such time and under such terms and conditions as it may deem advisable, by a special majority of the Board of Governors. In such case, each member shall have a reasonable opportunity to subscribe, under the conditions established in Article 8 and under such other conditions as the Board of Governors shall decide. No member, however, shall be obligated to subscribe to any part of such increased capital.

e)     The Board of Governors shall at intervals of not more than 5 (five) years review the capital stock of the Bank.

 

Article 8 – Subscription of Shares

a)     Each member shall subscribe to shares of the capital stock of the Bank. The number of shares to be initially subscribed by the founding members shall be those set forth in Attachment 1 of this Agreement, which specifies the obligation of each member as to both paid-in and callable capital. The number of shares to be initially subscribed by other members shall be determined by the Board of Governors by special majority on the occasion of the acceptance of their accession.

b)     Shares of stock initially subscribed by founding members shall be issued at par. Other shares shall be issued at par unless the Board of Governors decides in special circumstances to issue them on other terms.

c)     No increase in the subscription of any member to the capital stock shall become effective, and any right to subscribe thereto is hereby waived, which would have the effect of:

(i)    reducing the voting power of the founding members below 55 (fifty-five) per cent of the total voting power;

(ii)   increasing the voting power of the non-borrowing member countries above 20 (twenty) per cent of the total voting power;

(iii)increasing the voting power of a non-founding member country above 7 (seven) per cent of total voting power.

d)    The liability of the members on shares shall be limited to the unpaid portion of their issue price.

e)     No member shall be liable, by reason of its membership, for obligations of the Bank.

f)      Shares shall not be pledged nor encumbered in any manner. They shall be transferable only to the Bank.

Article 9 – Payment of Subscriptions

a)     On entry into force of this Agreement, payment of the amount initially subscribed by each founding member to the paid-in capital stock of the Bank shall be made in dollars in 7 (seven) installments as provided for in Attachment 2. The first installment shall be paid by each member within 6 (six) months after entry into force of this Agreement. The second installment shall become due 18 (eighteen) months from the entry into force of this Agreement. The remaining 5 (five) installments shall each become due successively 1 (one) year from the date on which the preceding installment becomes due.

b)     The Board of Governors shall determine the dates for the payment of amounts subscribed by the members of the Bank to the paid-in capital stock to which the provisions of paragraph (a) of this article do not apply.

c)     Payment of the amounts subscribed to the callable capital stock of the Bank shall be subject to call only as and when required by the Bank to meet its obligations incurred on borrowing of funds for inclusion in its ordinary capital resources or guarantees chargeable to such resources. In the event of such calls, payment may be made at the option of the member concerned in convertible currency or in the currency required to discharge the obligation of the Bank for the purpose of which the call is made.

d)    Calls on unpaid subscriptions shall be uniform in percentage on all callable shares.

Chapter III- Organization and Management

Article 10 – Structure

The Bank shall have a Board of Governors, a Board of Directors, a President, Vice-Presidents as decided by the Board of Governors, and such other officers and staff as may be considered necessary.

Article 11 – Board of Governors: composition and powers

a)     All the powers of the Bank shall be vested in the Board of Governors consisting of one governor and one alternate appointed by each member in such manner as it may determine. Governors shall be at ministerial level, and may be replaced subject to the pleasure of the member appointing him. No alternate may vote except in the absence of his principal. The Board shall on an annual basis select one of the governors as chairperson.
b)     The Board of Governors may delegate to the Directors authority to exercise any powers of the Board, except the power to:
(i)               admit new members and determine the conditions of their admission;
(ii)             increase or decrease the capital stock;
(iii)           suspend a member;
(iv)           amend this Agreement;
(v)             decide appeals from interpretations of this agreement given by the Directors;
(vi)           authorize the conclusion of general agreements for cooperation with other international organizations;
(vii)         determine the distribution of the net income of the Bank;
(viii)       decide to terminate the operations of the Bank and to distribute its assets;
(ix)           decide on the number of additional Vice-Presidents;
(x)             elect the President of the Bank;
(xi)           approve a proposal by the Board of Directors to call capital;
(xii)         approve the General Strategy of the Bank every 5 (five) years.
c)     The Board of Governors shall hold an annual meeting and such other meetings as may be provided for by the Board or called by the Directors. Meetings of the Board shall be called by the Directors whenever requested by members, the number of which shall be determined by the Board of Governors from time to time.
d)    A quorum for any meeting of the Board of Governors shall be a majority of the Governors, exercising not less than two thirds of the total voting power.
e)     The Board of Governors may by regulation establish a procedure whereby the Directors, when they deem such action to be in the best interests of the Bank, may obtain a vote of the Governors on a specific question without calling a meeting of the Board.
f)      The Board of Governors, and the Directors to the extent authorized, may adopt such rules and regulations as may be necessary or appropriate to conduct the business of the Bank.
g)     Governors and alternates shall serve as such without compensation from the Bank.
h)     The Board of Governors shall determine the salary and terms of the contract of service of the President.
i)       The Board of Governors shall retain full power to exercise authority over any matter delegated to the Board of Directors under paragraph (a) of Article 12.

Article 12 – Board of Directors

(a)   The Board of Directors shall be responsible for the conduct of the general operations of the Bank, and for this purpose, shall exercise all the powers delegated to them by the Board of Governors, and in particular:
(i)        in conformity with the general directions of the Board of Governors, take decisions concerning business strategies, country strategies, loans, guarantees, equity investments, borrowing by the Bank, setting basic operational procedures and charges, furnishing of technical assistance and other operations of the Bank;
(ii)      submit the accounts for each financial year for approval of the Board of Governors at each annual meeting; and
(iii)    approve the budget of the Bank.
(b)  Each of the founding members shall appoint 1 (one) Director and 1 (one) alternate. The Board of Governors shall establish by special majority the methodology by which additional Directors and alternates shall be elected, so that the total number of Directors shall be no more than 10 (ten).
(c)   Directors shall serve a term of 2 (two) years and may be re-elected. A Director shall continue in office until his successor has been chosen and qualified. Alternates shall have full power to act for the respective Director when he is not present.
(d)  The Board of Directors shall appoint a non-executive chairperson from among the Directors for a mandate of 4 (four) years. If the Director does not serve a full mandate or if he is not re-elected for a second term, the Director that replaces him will serve as chairperson for the remainder of the term.
(e)   The Board of Directors shall approve the basic organization of the Bank upon proposal by the President, including the number and general responsibilities of the chief administrative and professional positions of the staff.
(f)   The Board of Directors shall appoint a Credit and Investment Committee and may appoint such other committees as it deems advisable. Membership of such committees need not be limited to Governors, Directors, or alternates.
(g)  The Board of Directors shall function as a non-resident body, which will meet quarterly, unless the Board of Governors decides otherwise by a qualified majority. If the Board of Governors decides to make the Board of Directors a resident body, the President of the Bank will become henceforth the chairperson of the Board of Directors.
(h)  A quorum for any meeting of the Directors shall be a majority of the Directors, exercising not less than two-thirds of the total voting power.
(i)    A member of the Bank may send a representative to attend any meeting of the Board of Directors when a matter especially affecting that member is under consideration. Such right of representation shall be regulated by the Board of Governors.

Article 13 – President and Staff

a)     The Board of Governors shall elect a President from one of the founding members on a rotational basis, who shall not be a Governor or a Director or an alternate for either. The President shall be a member of the Board of Directors, but shall have no vote except a deciding vote in case of an equal division. The President may participate in meetings of the Board of Governors, but shall not vote at such meetings. Without prejudice to the mandate established in item (d) below, the President shall cease to hold office should the Board of Governors so decide by a special majority.
b)     The President shall be chief of the operating staff of the Bank and shall conduct, under the direction of the Directors, the ordinary business of the Bank, and in particular:
(i)        being, on this, accountable to the Directors, the President shall be responsible for the organization, appointment and dismissal of the officers and staff, and recommendation of admission and dismissal of Vice Presidents to the Board of Governors;
(ii)      the President shall head the credit and investment committee, composed also by the Vice-Presidents, that will be responsible for decisions on loans, guarantees, equity investments and technical assistance of no more than  a limit amount to be established by the Board of Directors, provided that no objection is raised by any member of Board of Directors within 30 (thirty) days since such project is submitted to the Board.
c)     There shall be at least 1 (one) Vice-President from each founding member except the country represented by the President. Vice-Presidents shall be appointed by the Board of Governors on the recommendation of the President. Vice-Presidents shall exercise such authority and perform such functions in the administration of the Bank, as may be determined by the Board of Directors.
d)    The President and each Vice-President shall serve for a 5 (five) year term, non renewable, except for the first term of the first Vice-Presidents, whose mandate shall be for 6 (six) years.
e)     The Bank, its officers and employees shall not interfere in the political affairs of any member, nor shall they be influenced in their decisions by the political character of the member or members concerned. Only economic considerations shall be relevant to their decisions, and these considerations shall be weighed impartially in order to achieve the purpose and functions stated in Articles 2 and 3.
f)      The President, Vice-Presidents, officers and staff of the Bank, in the discharge of their offices, owe their duty entirely to the Bank and to no other authority. Each member of the Bank shall respect the international character of this duty and shall refrain from all attempts to influence any of them in the discharge of their duties.

Article 14- Publication of Reports and Provision of Information

a)     The Bank shall publish an annual report containing an audited statement of the accounts. It shall also transmit quarterly to the members a summary statement of the financial position and a profit-and-loss statement showing the results of its ordinary operations.

b)     The Bank may also publish such other reports as it deems desirable to carry out its purpose and functions.

Article 15- Transparency and Accountability

The Bank shall ensure that its proceedings are transparent and shall elaborate in its own Rules of Procedure specific provisions regarding access to its documents.

 

Chapter IV - Operations

Article 16 – Use of Resources

The resources and facilities of the Bank shall be used exclusively to implement the purpose and functions set forth respectively in Articles 2 and 3 of this Agreement.

Article 17 – Depositories

Each member shall designate its central bank as a depository in which the Bank may keep its holdings of such member's currency and other assets of the Bank. If a member has no central bank, it shall, in agreement with the Bank, designate another institution for such purpose.

Article 18 – Categories of Operations

a)     The operations of the Bank shall consist of ordinary operations and special operations. Ordinary operations shall be those financed from the ordinary capital resources of the Bank. Special operations shall be those financed from the Special Funds resources.

b)     The ordinary capital of the Bank shall include the following:

(i)               subscribed capital stock of the Bank, including both paid-in and callable shares, except such part thereof as may be set aside into one or more Special Funds;

(ii)             funds raised by borrowings of the Bank by virtue of powers conferred by Chapter 5 of this Agreement, to which the commitment to calls provided for in item (c) of Article 9 is applicable;

(iii)           funds received in repayment of loans or guarantees and proceeds from the disposal of equity investments made with the resources indicated in (i) and (ii) of this paragraph;

(iv)           income derived from loans and equity investments made from the aforementioned funds or from guarantees to which the commitment to calls set forth in item (c) of Article 9 of this Agreement is applicable; and

(v)             any other funds or income received by the Bank which do not form part of its Special Funds resources.

c)     The ordinary capital resources and the Special Funds resources of the Bank shall at all times and in all respects be held, used, committed, invested or otherwise disposed of entirely separate from each other. The financial statements of the Bank shall show the ordinary operations and special operations separately.

d)    The ordinary capital resources of the Bank shall, under no circumstances, be charged with, or used to discharge, losses or liabilities arising out of special operations or other activities for which Special Fund resources were originally used or committed.

e)     Expenses appertaining directly to ordinary operations shall be charged to the ordinary capital resources of the Bank. Expenses appertaining directly to the special operations shall be charged to Special Funds resources.

Article 19 – Methods of Operation

a)     The Bank may guarantee, participate in, make loans or support through any other financial instrument, public or private projects, including public-private partnerships, in any borrowing member country, as well as invest in the equity, underwrite the equity issue of securities, or facilitate the access of international capital markets of any business, industrial, agricultural or services enterprise with projects in the territories of borrowing member countries.

b)     The Bank may co-finance, guarantee or co-guarantee, together with international financial institutions, commercial banks or other suitable entities, projects within its mandate.

c)     The Bank may provide technical assistance for the preparation and implementation of projects to be supported by the Bank.

d)     The Board of Governors, by special majority, may approve a general policy under which the Bank is authorized to develop the operations described in the previous items of this article in relation to public or private projects in a non-member emerging economy or developing country, subject to the condition that it involves a material interest of a member, as defined by such policy.

e)     The Board of Directors, by special majority, may exceptionally approve a specific public or private project in a non-member emerging economy or developing country involving the operations described in the previous items of this article. Sovereign guaranteed operations in non-members will be priced in full consideration of the sovereign risks involved, given the risk mitigators offered, and any other conditions established as the Board of Directors may decide.

Article 20 – Limitations on Operations

a)     The total amount outstanding in respect of the ordinary operations of the Bank shall not at any time exceed the total amount of its unimpaired subscribed capital, reserves and surplus included in its ordinary capital resources.

b)     The total amount outstanding in respect of the special operations of the Bank relating to any Special Fund shall not at any time exceed the total amount prescribed in the regulations of that Special Fund.

c)     The Bank shall seek to maintain reasonable diversification in its investments in equity capital. It shall not assume responsibility for managing any entity or enterprise in which it has an investment, except where necessary to safeguard its investments.

Article 21 – Operational Principles

The operations of the Bank shall be conducted in accordance with the following principles:

(i)               the Bank shall apply sound banking principles to all its operations, ensure adequate remuneration and have in due regard the risks involved;

(ii)             the Bank shall not finance any undertaking in the territory of a member if that member objects to such financing;

(iii)           in preparing any country program or strategy, financing any project or by making designation or reference to a particular territory, or geographic area in its documents, the Bank will not deem to have intended to make any judgment as to the legal or other status of any territory or area;

(iv)           the Bank shall not allow a disproportionate amount of its resources to be used for the benefit of any member. The Bank shall seek to maintain reasonable diversification in all of its investments;

(v)             the Bank shall place no restriction upon the procurement of goods and services from any country member from the proceeds of any loan, investment or other financing undertaken in the ordinary or special operations of the Banks, and shall, in all appropriate cases, make its loans and other operations conditional on invitations to all member countries to tender being arranged;

(vi)           the proceeds of any loan, investment or other financing undertaken in the ordinary operations of the Bank or with Special Funds established by the Bank shall be used only for procurement in member countries of goods and services produced in member countries, except in any case in which the Board of Directors determines to permit procurement in a non-member country of goods and services produced in a non-member country in special circumstances making such procurement appropriate;

(vii)         the Bank shall take the necessary measures to ensure that the proceeds of any loan made, guaranteed or participated in by the Bank, or any equity investment, are used only for the purposes for which the loan or the equity investment was granted and with due attention to considerations of economy and efficiency.

Article 22 – Terms and Conditions

a)     In the case of loans made, participated in, or guaranteed by the Bank and equity investments, the contract shall establish the terms and conditions for the loan, guarantee or equity investment concerned in accordance with the policies established by the Board of Directors, including, as the case may be, those relating to payment of principal, interest and other fees, charges, commissions, maturities, currency and dates of payment in respect of the loan, guarantee or equity investment, in accordance with the policies of the Bank. In setting such policies, the Board of Directors shall take fully into account the need to safeguard its income.

b)     In underwriting the sale of securities, the Bank shall charge fees under the terms and conditions established in the policies of the Bank.

Article 23 – Special Funds

a)     The establishment and administration of Special Funds by the Bank shall be approved by the Board of Governors by a qualified majority and shall follow the purposes set forth in Article 2 of this Agreement.

b)     Except when the Board of Governors specifies otherwise, the Special Funds shall be accountable and its operations subjected to the Board of Directors.

c)     The Bank may adopt such special rules and regulations as may be required for the establishment, administration and use of each Special Fund.

Article 24 – Provision of Currencies

The Bank in its operations may provide financing in the local currency of the country in which the operation takes place, provided that adequate policies are put in place to avoid significant currency mismatch.

Article 25 – Methods of Meeting the Losses of the Bank

a)     In cases of default on loans made, participated in or guaranteed by the Bank in its ordinary operations, the Bank shall take, firstly, all necessary actions as it deems appropriate in order to recover the loans made and, secondly, it may modify the terms of the loans, other than the currency of repayment.

b)    Losses arising in the Bank’s ordinary operation shall be charged:

(i)           first, to the provisions of the Bank;

(ii)               second, to net income;

(iii)             third, against the special reserve;

(iv)             fourth, against the general reserve and surpluses;

(v)               fifth, against the unimpaired paid-in capital, and

(vi)        last, against an appropriate amount of the uncalled subscribed callable capital which shall be called in accordance with the provisions of  paragraphs (c) and (d) of Article 9 of these Articles of Agreement.

c)     In deploying its efforts for credit recovery in case of default, the Bank shall seek the assistance of the authorities of the country where the operation takes place.

Chapter V - Borrowing and other Additional Powers

Article 26– General Powers

In addition to the powers specified elsewhere in this Agreement, the Bank shall have the power to:

(a)   borrow funds in member countries or elsewhere, and in this connection to furnish such collateral or other security therefore as the Bank shall determine, provided always that:

(i)    before making a sale of its obligations in the territory of a member country, the Bank shall have obtained its approval;

(ii)  where the obligations of the Bank are to be denominated in the currency of a member, the bank shall have obtained its approval;

(iii) the Bank shall obtain the approval of the countries referred to in sub-paragraphs (i) and (ii) of this paragraph that the proceeds may be exchanged without restriction for other currencies; and

(iv) before determining to sell its obligations in a particular country, the Bank shall consider the amount of previous borrowing, if any, in that country, the amount of previous borrowing in other countries, and the possible availability of funds in such other countries; and shall give due regard to the general principle that its borrowings should to the greatest extent possible be diversified as to country of borrowing.

(b)  buy and sell securities the Bank has issued or guaranteed or in which it has invested, provided always that it shall have obtained the approval of any country in whose territory the securities are to be bought or sold;

(c)   guarantee securities in which it has invested in order to facilitate their sale;

(d)  underwrite, or participate in the underwriting of, securities issued by any entity or enterprise for purposes consistent with the purpose of the Bank;

(e)   invest funds, not needed in its operations, in such obligations as it may determine, and invest funds held by the Bank for pensions or similar purposes in marketable securities. In doing so, the Bank shall give due consideration to invest such funds in the territories of members in obligations of members or nationals thereof;

(f)    exercise such other powers and establish such rules and regulations as may be necessary or appropriate in furtherance of its purpose and functions, consistent with the provisions of this Agreement.

Article 27 – Notice to be placed on Securities

Every security issued or guaranteed by the Bank shall bear on its face a conspicuous statement to the effect that it is not an obligation of any Government, unless it is in fact the obligation of a particular Government, in which case it shall so state.

Chapter VI - Status, Immunities and Privileges

Article 28– Purpose of the Chapter

To enable the Bank effectively to fulfill its purpose and carry out the functions entrusted to it, the status, immunities, exemptions and privileges set forth in this Chapter shall be accorded to the Bank in the territory of each member.

Article 29– Status

a) The Bank shall possess full international personality.

b) In the territory of each member the Bank shall possess full juridical personality and, in particular, full capacity to:

(i)    contract;

(ii)  acquire and dispose of immovable and movable property; and

(iii)institute legal proceedings

.

Article 30 – Position of the Bank with Regard to Judicial Process

a)     The Bank shall enjoy immunity from every form of legal process, except in cases arising out of or in connection with the exercise of its powers to borrow money, to guarantee obligations, or to buy and sell or underwrite the sale of securities, in which cases actions may be brought against the Bank in a court of competent jurisdiction in the territory of a country in which the Bank has its headquarters or offices, or has appointed an agent for the purpose of accepting service or notice of process, or has issued or guaranteed securities.

b)     Notwithstanding the provisions of paragraph (a) of this Article, no action shall be brought against the Bank by any member, or by any agency or instrumentality of a member, or by any entity or person directly or indirectly acting for or deriving claims from a member or from any agency or instrumentality of a member. Members shall have recourse to such special procedures for the settlement of controversies between the Bank and its members as may be prescribed in this Agreement, in the by-laws and regulations of the Bank, or in contracts entered into with the Bank.

c)     Property and assets of the Bank shall, wheresoever located and by whomsoever held, be immune from all forms of seizure, attachment or execution before the delivery of final judgment against the Bank.

Article 31 – Freedom and Immunity of Assets and Archives

a)     Property and assets of the Bank, wherever located and by whomsoever held, shall be immune from search, requisition, confiscation, expropriation or any other form of taking or foreclosure by executive or legislative action.

b)     The archives of the Bank and, in general, all documents belonging to it or held by it, shall be inviolable, wherever located.

c)     To the extent necessary to carry out the purpose and functions of the Bank and subject to the provisions of this Agreement, all property and other assets of the Bank shall be exempt from restrictions, regulations, controls and moratoria of any nature.

Article 32 – Privilege for Communications

The official communications of the Bank shall be accorded by each member the same treatment that it accords to the official communications of other members.

Article 33 – Personal Immunities and Privileges

All Governors, Directors, alternates, officers, and employees of the Bank shall have the following privileges and immunities:

(i)    immunity from legal process with respect to acts performed by them in their official capacity, except when the Bank waives this immunity;

(ii)  when not local nationals, the same immunities from immigration restrictions, alien registration requirements and national service obligations and the same facilities as regards exchange provisions as are accorded by members to the representatives, officials, and employees of comparable rank of other members;

(iii)the same privileges in respect of traveling facilities as are accorded by members to representatives, officials, and employees of comparable rank of other members.

Article 34 – Exemption from Taxation

a)     The Bank, its property, other assets, income, transfers and the operations and transactions it carries out pursuant to this Agreement, shall be immune from all taxation, from all restrictions and from all customs duties. The Bank shall also be immune from any obligation relating to the payment, withholding or collection of any tax, or duty.

b)     No tax shall be levied on or in respect of salaries and emoluments paid by the Bank to Directors, alternates, officers or employees of the Bank, including experts performing missions for the Bank, except where a member, notwithstanding Article 48(d), deposits with its instrument of ratification, acceptance, approval or accession a declaration that such member retains for itself and its political subdivisions the right to tax salaries and emoluments paid by the Bank to citizens or nationals of such member.

c)     No tax of any kind shall be levied on any obligation or security issued by the Bank, including any dividend or interest thereon, by whomsoever held:

(i)    which discriminates against such obligation or security solely because it is issued by the Bank; or

(ii)  if the sole jurisdictional basis for such taxation is the place or currency in which it is issued, made payable or paid, or the location of any office or place of business maintained by the Bank.

d)     No tax of any kind shall be levied on any obligation or security guaranteed by the Bank, including any dividend or interest thereon, by whomsoever held:

i) which discriminates against such obligation or security solely because it is guaranteed by the Bank; or

ii) if the sole jurisdictional basis for such taxation is the location of any office or place of business maintained by the Bank.

Article 35 – Implementation

Each member, in accordance with its juridical system, shall promptly take such action as is necessary to make effective in its own territory the provisions set forth in the Chapter and shall inform the Bank of the action which it has taken on the matter.

Article 36 – Waiver of Immunities, Privileges and Exemptions

The immunities, privileges and exemptions conferred under this Chapter are granted in the interest of the Bank. The Board of Directors may waive to such extent and upon such conditions as it may determine any of the immunities, privileges and exemptions conferred under this Chapter in cases where such action would, in its opinion, be appropriate in the best interests of the Bank. The President shall have the right and the duty to waive any immunity, privilege or exemption in respect of any officer, employee or expert of the Bank, other than the President and each Vice-President, where, in his or her opinion, the immunity, privilege or exemption would impede the course of justice and can be waived without prejudice to the interests of the Bank. In similar circumstances and under the same conditions, the Board of Directors shall have the right and the duty to waive any immunity, privilege or exemption in respect of the President and each Vice-President.

Chapter VII - Withdrawal and Suspension of Members, Temporary Suspension and Termination of Operations of the Bank

Article 37– Withdrawal

a)     Any member may withdraw from the Bank by delivering to the Bank at its headquarters written notice of its intention to do so. Such withdrawal shall become finally effective, and the membership shall cease, on the date specified in the notice but in no event less than 6 (six) months after the notice is delivered to the Bank. However, at any time before the withdrawal becomes finally effective, the member may notify the Bank in writing of the cancellation of its notice of intention to withdraw.

b)     After withdrawing, a member shall remain liable for all direct and contingent obligations to the Bank to which it was subject at the date of delivery of the withdrawal notice, including those specified in Article 39. However, if the withdrawal becomes finally effective, the member shall not incur any liability for obligations resulting from operations of the Bank effected after the date on which the withdrawal notice was received by the Bank.

c)     Upon receipt of a notice of withdrawal, the Board of Governors shall adopt procedures for settlement of accounts with the withdrawing Member country, no later than the date upon which the withdrawal becomes effective.

Article 38 – Suspension of Membership

a)     If a member fails to fulfill any of its obligations to the Bank, the Bank may suspend its membership by decision of the Board of Governors by special majority.

b)     The member so suspended shall automatically cease to be a member of the Bank 1 (one) year from the date of its suspension unless the Board of Governors decides by the same majority to terminate the suspension.

c)     While under suspension, a member shall not be entitled to exercise any rights under this Agreement, except the right of withdrawal, but shall remain subject to all its obligations.

d)    The Board of Governors shall adopt regulations as may be necessary for the implementation of this article.

Article 39 – Settlement of Accounts

a)     After a country ceases to be a member, it no longer shall share in the profits or losses of the Bank, nor shall it incur any liability with respect to loans and guarantees entered into by the Bank thereafter. However, it shall remain liable for all amounts it owes the Bank and for its contingent liabilities to the Bank so long as any part of the loans or guarantees contracted by the Bank before the date on which the country ceased to be a member remains outstanding.

b)     When a country ceases to be a member, the Bank shall arrange for the repurchase of such country's capital stock as a part of the settlement of accounts pursuant to the provisions of this Article; but the country shall have no other rights under this Agreement except as provided in this Article and in Article 46.

c)     The Bank and the country ceasing to be a member may agree on the repurchase of the capital stock on such terms as are deemed appropriate in the circumstances, without regard to the provisions of the following paragraph. Such agreement may provide, among other things, for a final settlement of all obligations of the country to the Bank.

d)    If the agreement referred to in the preceding paragraph has not been consummated within 6 (six) months after the country ceases to be a member or such other time as the Bank and such country may agree upon, the repurchase price of such country's capital stock shall be its book value, according to the books of the Bank, on the date when the country ceased to be a member. Such repurchase shall be subject to the following conditions:

(i)    the payment may be made in such installments, at such times and in such available currencies as the Bank determines, taking into account the financial position of the Bank;

(ii)  any amount which the Bank owes the country for the repurchase of its capital stock shall be withheld to the extent that the country or any of its subdivisions or agencies remains liable to the Bank as a result of loan or guarantee operations. The amount withheld may, at the option of the Bank, be applied on any such liability as it matures. However, no amount shall be withheld on account of the country's contingent liability for future calls on its subscription pursuant to Article 9(c);

(iii) if the Bank sustains net losses on any loans or participations, or as a result of any guarantees, outstanding on the date the country ceased to be a member, and the amount of such losses exceeds the amount of the reserves provided therefore on such date, such country shall repay on demand the amount by which the repurchase price of its shares would have been reduced, if the losses had been taken into account when the book value of the shares, according to the books of the Bank, was determined. In addition, the former member shall remain liable on any call pursuant to Article 9(c), to the extent that it would have been required to respond if the impairment of capital had occurred and the call had been made at the time the repurchase price of its shares had been determined.

e)     In no event shall any amount due to a country for its shares under this section be paid until 12 (twelve) months after the date upon which the country ceases to be a member. If within that period the Bank terminates operations, all rights of such country shall be determined by the provisions of Articles 41 to 43, and such country shall be considered still a member of the Bank for the purposes of such articles except that it shall have no voting rights.

Article 40 – Temporary Suspension of Operations

In an emergency, the Board of Directors may suspend temporarily operations in respect of new loans, guarantees, underwriting, technical assistance and equity investments pending an opportunity for further consideration and action by the Board of Governors.

Article 41 – Termination of Operations

The Bank may terminate its operations as decided by the Board of Governors by special majority. Upon such termination of operations the Bank shall forthwith cease all activities, except those incidents to the orderly realization, conservation and preservation of its assets and settlement of its obligations.

Article 42 – Liability of Members and Payment of Claims

a)     The liability of all members arising from the subscriptions to the capital stock of the Bank and in respect to the depreciation of their currencies shall continue until all direct and contingent obligations shall have been discharged.

b)     All creditors holding direct claims shall be paid out of the assets of the Bank and then out of payments to the Bank on unpaid or callable subscriptions. Before making any payments to creditors holding direct claims, the Board of  Directors shall make such arrangements as are necessary, in its judgment, to ensure a pro rata distribution among holders of direct and contingent claims.

Article 43 – Distribution of Assets

a)     No distribution of assets shall be made to members on account of their subscriptions to the capital stock of the Bank until all liabilities to creditors chargeable to such capital stock shall have been discharged or provided for. Moreover, such distribution must be approved by a decision of the Board of Governors by special majority.

b)     Any distribution of the assets of the Bank to the members shall be in proportion to capital stock held by each member and shall be effected at such times and under such conditions, as the Bank shall deem fair and equitable. The shares of assets distributed need not be uniform as to type of assets. No member shall be entitled to receive its share in such a distribution of assets until it has settled all of its obligations to the Bank.

c)     Any member receiving assets distributed pursuant to this article shall enjoy the same rights with respect to such assets as the Bank enjoyed prior to their distribution.

Chapter VIII - Amendments, Interpretation and Arbitration

Article 44 – Amendments

a)     This Agreement may be amended only by decision of the Board of Governors by special majority.

b)     Any proposal to introduce modifications in this Agreement, whether emanating from a member, a Governor or the Board of Directors, shall be communicated to the chairperson of the Board of Governors who shall bring the proposal before the Board. If the proposed amendment is approved by the Board, the Bank shall ask all members whether they accept the proposed amendment. When the amendment is accepted, ratified or approved by 2/3 (two thirds) of the members, the Bank shall certify the fact by formal communication addressed to all members.

c)     The amendments shall enter into force for all members 3 (three) months after the date of the formal communication provided for in paragraph (b) of this article, unless the Board of Governors specify a different period.

Article 45 – Interpretation

a)     Any question of interpretation of the provisions of this Agreement arising between any member and the Bank or between any members of the Bank shall be submitted to the Board of Directors for decision.

b)     Members especially affected by the question under consideration shall be entitled to direct representation before the Board of Directors as provided in Article 12(i).

c)     In any case where the Board of Directors has given a decision under (a) above, any member may require that the question be submitted to the Board of Governors, whose decision shall be final. Pending the decision of the Board of Governors, the Bank may, so far as it deems it necessary, act on the basis of the decision of the Board of Directors.

Article 46 – Arbitration

a)      If a disagreement should arise between the Bank and a country which has ceased to be a member, or between the Bank and any member after adoption of a decision to terminate the operation of the Bank, such disagreement shall be submitted to arbitration by a tribunal of 3 (three) arbitrators. One of the arbitrators shall be appointed by the Bank, another by the country concerned, and the third, unless the parties otherwise agree, by an authority as may approved by the Board of Governors. If all efforts to reach a unanimous agreement fail, decisions shall be made by a majority vote of the 3 (three) arbitrators.

b)      The third arbitrator shall be empowered to settle all questions of procedure in any case where the parties are in disagreement with respect thereto.

c)      Any disagreement concerning a contract between the Bank and a borrowing country shall be settled according to the respective contract.

Article 47 – Approval deemed given

Whenever the approval of any member is required before any act may be done by the Bank, approval shall be deemed to have been given unless the member presents an objection within such reasonable period as the Bank may fix in notifying the member of the proposed act.

 

Chapter IX – Final Provisions

Article 48 –Acceptance

a)     Each signatory country shall deposit with the government of the Federative Republic of Brazil an instrument setting forth that it has accepted, ratified or approved this Agreement in accordance with its own laws.

b)     The Government of the Federative Republic of Brazil shall send certified copies of this Agreement to the signatories and duly notify them of each deposit of the instrument of acceptance, ratification or approval made pursuant to the foregoing paragraph, as well as the date thereof.

c)     After the date on which the Bank commences operations, the Government of the Federative Republic of Brazil may receive the instrument of accession to this Agreement from any country whose membership has been approved in accordance with Article 5(b).

d)    The acceptance, ratification or approval of the Agreement, or the accession thereto, shall not contain any objection or reservation.

Article 49 – Entry into Force

a)     This Agreement shall enter into force when instruments of acceptance, ratification or approval have been deposited, in accordance with Article 48 by all BRICS countries.

b)     BRICS countries whose instruments of acceptance, ratification or approval were deposited prior to the date on which the Agreement entered into force shall become members on the date it enters into force. Other countries shall become members on the dates on which their instruments of accession are deposited.

Article 50 – Commencement of Operations

The chair of the BRICS countries shall call the first meeting of the Board of Governors as soon as this Agreement enters into force under Article 49 of this Chapter, in order to take the necessary decisions for the initial operation of the Bank.

ATTACHMENT 1

Shares of Initial Subscribed Capital Stock of Founding Members

Each founding member shall initially subscribe 100,000 (one hundred thousand) shares, in a total of ten billion dollars (US$10,000,000,000), of which 20,000 (twenty thousand) shares correspond to paid in capital, in a total of two billion dollars (US$2,000,000,000) and 80,000 (eighty thousand) shares correspond to callable capital, in a total of eight billion dollars (US$8,000,000,000).

ATTACHMENT 2

Payment of Initial Subscriptions to the Paid in Capital by the Founding Members

Installment	Paid in capital per country in million dollars
1	150
2	250
3	300
4	300
5	300
6	350
7	350