During the BRICS Interbank Cooperation Mechanism (ICM) Annual Meeting in Beijing, Vnesheconombank and BRICS development banks signed the Interbank Local Currency Credit Line Agreement under BRICS Interbank Cooperation Mechanism and the Cooperation Memorandum Relating to Credit Ratings.
For Vnesheconombank, the documents were signed by First Deputy Chairman – Member of the Board Nikolay Tsekhomsky. The Agreement and the Memorandum were also executed by the CEOs of Banco Nacional de Desenvolvimento Economico e Social, China Development Bank, Eximbank of India, and Development Bank of Southern Africa.
The banks will establish a framework mechanism to extend credit lines in local currencies to the BRICS ICM members and the BRICS companies against guarantees of the signatory banks.
“The agreement signed is an important practical step in the multilateral cooperation between the BRICS development banks. The use of local currencies will help promote mutually beneficial economic cooperation, mitigate currency risks, increase trade, and facilitate companies in accessing the BRICS markets,” pointed out Nikolay Tsekhomsky.
The Cooperation Memorandum Relating to Credit Ratings provides for the BRICS ICM members to share information about internal credit ratings assigned to clients, as well as rating assessment and assignment methodologies. Information will be provided at request and on a confidential basis.
The BRICS Interbank Cooperation Mechanism was established in 2010 upon the execution of the Memorandum on Cooperation between BRICS State Financial Development and Export Support Institutions. On 13 April 2011, the authorized financial institution of RSA, Development Bank of Southern Africa, acceded to the Memorandum.
The BRICS authorized banks are: Banco Nacional de Desenvolvimento Economico e Social (BNDES), State Corporation “Bank for Development and Foreign Economic Affairs (Vnesheconombank), China Development Bank (CDB), Eximbank of India and Development Bank of Southern Africa.
