World Bank will work with proposed BRICS bank

Bhubaneswar: The World Bank is looking forward to associate itself with the proposed development bank for BRICS, its President Robert B Zoellick said.

“If BRICs also creates an additional financial institution, we will be looking forward to working with it to see how we can leverage one another’s strength,” Zoellick told reporters on the eve of BRICS summit in New Delhi.

The World Bank chief was replying a question on a proposed development bank for Brazil, Russia, India, China and South Africa.

Terming proposal to set up a new development bank as a complicated venture, the World Bank President said: “I have seen over the years, putting together a new bank is a complicated venture. You have to get capital.”

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“If one wants to go to the international market, one has to have rating,” Zoellick said adding that World Bank has AAA rating which many countries did not have.

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“Organising such an institution, getting it capitalised, getting it set up is a challenge,” he said.

Developing countries could play a larger role in development in other developing countries, he said.

Zoellick said “one of the benefits of World Bank is that it involves much more than finance. We have staff, local experience around the globe in different sectors like private organisations and others.

“It (BRICS Bank) will complement the type of work we do and help in training and assist regional development banks in Africa, Asia, Latin America,” he said.

He said India required more funding though World Bank’s total outstanding loans remained at between $33 billion and $34 billion.

“For a country as vast as India, there is need for even more. In this context in a couple of days, I will meet the (India’s) finance minister,” he said, adding WB’s lending in the country would be discussed.

PTI