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Brazil loses close to 3% of voting power in BRICS bank – Valor

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Brazil loses close to 3% of voting power in BRICS bank – Valor

Brazil has dropped a portion of its voting power in New Development Bank, the development institution established by the BRICS countries which also include Russia, India, China and South Africa after the Brazilian government failed to pay part of its capital contribution to the entity, Valor Econômico reported.

Brazil, which currently holds the chair of the China-based institution, was supposed to pay $292 million in capital to the bank but reportedly had not allotted any budget for it, according to the publication. The bank's partners each have a 20% share in its capital.

Following the payment delay, Brazil's share will be reduced by close to 3%, which can only be regained once the contribution is paid.

The delay will not impact financing for Brazil, according to Valor.

Sources told Valor that the Brazilian government said it will pay its contribution to the bank as soon as possible, but did not mention a specific date.

According to the publication, the New Development Bank has to report to credit rating agencies the delay in Brazil's capital contribution.