5 Banks of BRICS (Brazil, Russia, India, China and South Africa) inked 2 pacts:-
1. Master Agreement on Extending Credit Facility in Local Currency;
2. BRICS Multilateral Letter of Credit Confirmation Facility Agreement
This is a combined attempt to address with problems of a jolting world economy hit by sovereign debt crisis in many European countries and protectionist propensities of some developed countries.
The participating banks included:
1. Export Import Bank of India
2. Banco Nacional de Desenvolimento Economico e Social of Brazil
3. State Corporation Bank for Development and Foreign Economic Affairs of Russia
4. China Development Bank
5. Development Bank of South Africa.
1. Master Agreement on Extending Credit Facility in Local Currency;
2. BRICS Multilateral Letter of Credit Confirmation Facility Agreement
This is a combined attempt to address with problems of a jolting world economy hit by sovereign debt crisis in many European countries and protectionist propensities of some developed countries.
The participating banks included:
1. Export Import Bank of India
2. Banco Nacional de Desenvolimento Economico e Social of Brazil
3. State Corporation Bank for Development and Foreign Economic Affairs of Russia
4. China Development Bank
5. Development Bank of South Africa.
Objective:
- To tackle the demand for fully convertible currencies for transactions among BRICS nations, and thus aid in reducing the transaction costs of intra-BRICS trade.
- To promote intra-BRICS Trade. Expanding intra-BRICS trade from the current $230 billion (about Rs ,50,000 crore) to $500 billion (about Rs 25,00,000 crore) by 2015.
- To enhance cooperation among the Development Banks of BRICS.
BRICS Development Bank
Suggestion made to set up a BRICS Development Bank. The proposal on the BRICS Development Bank formed part of the Summit’s Delhi Declaration.
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