Finance Ministers and central bank governors from Brazil, Russia, India, China and South Africa (Brics) agreed, during meetings in Washington in April, to an “intensive” six-month work programme to firm up arrangements for the establishment of the so-called Brics Development Bank.

The programme, which was confirmed by South Africa’s Finance Minister Pravin Gordhan this week, was one of several initiatives approved following the ‘Durban Declaration’, which was issued by the heads of State after their yearly Brics Summit, in South Africa in March.

Gordhan said the work programme would interrogate the bank’s mandate and scope of operations, its capitalisation and the sources of funding, as well as where the new bank would be located and when it would become operational.

A report would be provided to the Brics leaders when they met in Saint Petersburg, Russia, in early September, where they would be assembling for the 2013 G20 Summit.

Reports suggest that the Brics countries aim to complete preparations for the bank in time for the 2014 Brics Summit, which is scheduled for Brazil. In fact, Reuters recently quoted Indian Finance Minister P Chidambaram as saying that “we hope to complete our homework” ahead that summit.

Representatives from the central banks of the five countries were also preparing the way for a treaty to deal with the contingency reserves arrangements agreed in Durban and Gordhan expected progress “over the next few months”.

A work programme had also been initiated on the development of a Brics trade reinsurance scheme, which would seek to diversify these activities away from European institutions. A technical paper would be produced, which would feature on the agenda of a Brics finance Ministers meeting scheduled for Moscow, in July.

Attention was also being given to the issue of improved tax and customs arrangements between the Brics participants.

Besides following up the Durban Declaration, the Brics finance Ministers and central bank governors also jointly raised concerns about the state of International Monetary Fund (IMF) reform.

They were particularly unhappy with the lack of agreement on a new ‘quota formula’, which determined a country’s voting strength within the IMF, and the “bias” in the current formula against certain emerging and development countries.

“Generally, the view is that European economies are over represented in the IMF, particularly given the new economic circumstances were you’ve got new and stronger actors emerging,” Gordhan said.

There was a particular concern that the current formula would result in the further erosion in the “voice and representation” of sub-Saharan African countries as the IMF sought to accommodate the bigger emerging economies.

“What we are fighting for here … is that Brics countries and developing countries more generally must be given a greater voice in the governance and other processes of the IMF. And from an African point of view, we are saying that, in the new formula, it is very important Africa doesn’t, once again, lose a quota share in order to benefit constituencies outside of Africa.”