BRICS may set up joint anti-crisis fund, says Russia

Major emerging economies may set up a joint anti-crisis fund if they do not receive enough say in decision making at the International Monetary Fund under proposed voting reforms, a senior Russian official said.

Major emerging economies may set up a joint anti-crisis fund if they do not receive enough say in decision making at the International Monetary Fund under proposed voting reforms, a senior Russian official said.

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The leaders of BRICS nations — Brazil, Russia, India, China and South Africa — pledged at the Group of 20 summit in Mexico to chip in $75 billion to boost the IMF’s lending power but had sought to tie the loans to voting reforms.

At the same time BRICS finance ministers and central bank governors were instructed to study possible currency swaps arrangements and report to next year’s BRICS leaders’ summit in South Africa.

“It is clear that BRICS countries have entered the stage when they can demand to be reckoned with (in the course of the IMF reform),” deputy finance minister Sergei Storchak told reporters.

“The issue of currency swaps, or maybe at some point a joint anti-crisis fund, should be viewed from this perspective,” he said. “It will be a parallel mechanism in addition to the IMF.”