Brics Bank

Introduction.

In the last decades, the world has been witness of a fundamental change in the international economy. A new economic structure has raise with the special characteristics of emerging and developing countries having significantly weight in the global GDP and especially in global economic growth; in particular, they have been responsible for most of the growth in the world economy since the begin of the XXI century.

This new composition allow to some developing economies to accumulate very large long-term foreign exchange assets, which they have typically placed in sovereign wealth funds. The share in the world total, as well as the absolute level of foreign exchange reserves that emerging countries have accumulated, has also grown remarkably in the last decade.

At the same time, different opinions around the world and other important debates have conclude in the need for a reform in the international financial institutions, but more important a deep change into the existing entities which main objective is provide assistance, or in more specific words, inside the multilateral development banks better known as development bank.

A multilateral development bank (MDB) is an institution, created by a group of countries that provides financing and professional advising for the purpose of development. MDBs have large memberships including both developed donor countries and developing borrower countries. MDBs finance projects in the form of long-term loans at market rates, very-long-term loans (also known as credits) below market rates, and through grants.

However, in recent years, existing institutions just as the World Bank, the European Investment Bank (EIB) or even European Bank for Reconstruction and Development (EBRD), seems to have an apparent failure in its established purpose of satisfy the development financing needs of developing countries. Proof of the above, are the large unmet needs in the developing nations, most clearly in the field of...