Five banks of the BRICS (Brazil, Russia, India, China and South Africa) Bank Cooperation Mechanism have agreed to establish credit lines in the national currencies and cooperate on credit ratings.
The agreement was signed ahead of the ninth edition of the BRICS Summit, which is underway in Xiamen, China. The 2017 summit, attended by leaders of the five countries including Indian Prime Minister Narendra Modi, is centred on the theme of ‘Stronger Partnership for a Brighter Future’.
The summit will conclude on 5 September.
Key Highlights of the agreement
• Five banks including Brazilian Development Bank (BNDES), Vnesheconombank, Export-Import Bank of India, China Development Bank and Development Bank of South Africa (DBSA) signed the agreement to establish credit lines in the national currencies.
• The banks also signed a memorandum of cooperation on credit ratings.
• The agreement on credit ratings reportedly enables the banks to share information about internal credit ratings and rating assessment.
• The decision was taken in order to bolster further cooperation.
Besides this, the New Development Bank (NDB) of the BRICS countries has approved USD 1.4 billion loans for four infrastructure and sustainable development projects in the three countries including China, India and Russia.
For India specifically, the bank has approved USD 470 million loan for Madhya Pradesh’s Multi-Village Rural Drinking Water Supply Scheme Project.
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