BRICS nations agree on establishment of development bank

DURBAN, South Africa - BRICS nations have agreed to establish a development bank to fund infrastructure in the five emerging economies, Chinese Finance Minister Lou Jiwei confirmed on Tuesday.

"The finance ministers of the five countries have agreed that the set-up of the development bank is feasible and reasonable," Lou said after the conclusion of the meeting among finance ministers from Brazil, Russia, India, China and South Africa before the fifth BRICS summit opens.

The establishment of the development bank is necessary, he said, adding the nations have great demand for fund to boost infrastructure construction.

He said the ministers did not discuss the initial investment from each country to the bank. "What we have now (about the development bank) is just a general picture," he said, adding they will see whether the final results would be settled next year. "That's what the nations are working towards," he said.

He argued that the development bank would be complementary to the existing development institutions such as the World Bank and Asian Development Bank.

He also said the current global economic situation is very complicated, noting the debt crisis in Europe is not over yet, which along with the quantitative easing policy has created an unfavorable external environment for the BRICS nations.