Five banks of Brics nations sign pact for credit lines

On September 2,2017, five banks of the BRICS 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 Brics (Brazil, Russia, India, China and South Africa) summit in China’s Xiamen city on September 3rd in which leaders of the five countries, including Prime Minister Narendra Modi took part. “Brazilian Development Bank (BNDES), Vnesheconombank, Export-Import Bank of India, China Development Bank and Development Bank of South Africa (DBSA) have signed an agreement to establish credit lines in the national currencies, as well as a memorandum of cooperation on credit ratings,” Russian news agency TASS reported. The New Development Bank (NDB) of the five nations has approved $1.4 billion loans for sustainable development projects in China, India and Russia. For India, the bank has approved $470 million loan for Madhya Pradesh’s Multi-Village Rural Drinking Water Supply Scheme Project.