Brics bank presidency to be for five years

Brazilia - India will hold the presidency of the new Brics development bank for five years, a senior official involved in the negotiations said on Tuesday.

The source added Brazil is expected to be the second country to hold the bank's presidency, according to a preliminary agreement between the members of the group which also includes China, Russia and South Africa.

The long-awaited bank is the first major achievement of the Brics countries since they got together in 2009 to press for a bigger say in the global financial order created by Western powers after World War II and centred on the International Monetary Fund and the World Bank.

The Brics were prompted to seek coordinated action following an exodus of capital from emerging markets last year, triggered by the scaling back of US monetary stimulus.

The new bank reflects the growing influence of the Brics, which account for almost half the world's population and about one-fifth of global economic output.

The bank will begin with a subscribed capital of $50bn divided equally between its five founders, with an initial total of $10bn in cash put in over seven years and $40bn in guarantees. It is scheduled to start lending in 2016 and be open to membership by other countries, but the capital share of the Brics cannot drop below 55%.