India has proposed setting up a multilateral bank that would be funded by developing nations with the aim of funding projects in those countries and possibly other developing nations, Bloomberg reported. A Brazilian official has confirmed the proposalThe proposal has been circulating among BRIC nations and will be discussed when they meet for the G20 talks in Mexico City this weekend. Officials are expected to continue these talks at a March BRICS summit in New Delhi.
BRIC nations have been pushing for a bigger role in the IMF. Last year they rallied to end the practice of picking World Bank presidents and IMF chiefs from the U.S. and Europe. Bank of Mexico governor had pushed for the role of IMF chief last year, but lost to Christine Lagarde.
This also follows on the meeting of BRIC nations in April 2011 in China, where they pledged to boost financial cooperation among the development banks of Brazil, Russia, India, China and South Africa.