BRICS bank to lend via local banks; operations to start in April
10 July 2015
The New Development Bank jointly set up by Brazil, Russia, India, China and South Africa, mainly for intra-group lending, today signed memoranda of understanding (MoU) with development banks of the five member nations.
The bank also set April 2016 for start of lending operations in local currencies.
Export-Import Bank of India (Exim Bank) along with other member development banks of Brazil, Russia, India, China, and South Africa (BRICS) grouping signed a multilateral agreement to cooperate with the New Development Bank (NDB).
Exim Bank chairman and managing director Yaduvendra Mathur and chairpersons or presidents of other member development banks of BRICS signed the agreement in Ufa, Russia, during the BRICS Summit 2015, a bank release said.
Exim Bank also signed a cooperation agreement with Brazilian Development Bank (BNDES).
The MoU is aimed at sharing of knowledge, information and best practices, capacity building (including project development skills), promotion of joint events, research and programmes and development of effective and sustainable financing solutions for projects of mutual interest, the release said.
Meanwhile, K V Kamath, the current head of the New Development Bank (NDB), said the bank will start lending in local currency by April next year.
He said member countries will be the primary focus of the credit facility and a decision to open membership for other countries will be taken in the next few months by the bank's Board of Governors.
NDB, with a capital of $100 billion, will look at various instruments of credit to the member countries, which require huge resources for development, he said.