Photo: The agreement was signed on July 15, 2014, at the BRICS Summit in Brazil

The Treaty for the Establishment of a BRICS Contingent Reserve Arrangement (CRA) will take effect in 30 days, the Foreign Ministry announced Tuesday (June 30). The arrangement creates a fund with resources from all bloc countries that can be accessed by them in times of crisis, with a start-up capital of $100 billion consisting of $41 billion contributed by China, $18 billion by each of Brazil, India, and Russia, and $5 billion by South Africa.

According to a Foreign Ministry statement, “the CRA aims to provide temporary resources to BRICS members facing pressures with their balance of payments” and “will contribute toward international financial stability by complementing the existing global financial safety net. This instrument will also strengthen the confidence of global economic and financial actors and mitigate the risk of contamination from any shocks that may affect the group's economies.”

The agreement was signed on July 15, 2014, at the BRICS Summit in Fortaleza. On that same occasion, the bloc created the New Development Bank, also known as the BRICS Bank, whose ratification should be complete next week with China's signature. Created to support infrastructure development policies in the five countries, the bank will have a start-up capital of $50 billion, consisting of $10 billion in funds and $40 billion in collateral.