BRICS States to Agree on Mutual Credits in National Currencies – Bank

BRICS and SCO International Media Centre

BRICS States to Agree on Mutual Credits in National Currencies – Bank

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BRICS member-states will sign an agreement on mutual loans in national currencies at the upcoming summit in China, a Vnesheconombank (VEB) representative told Sputnik in an interview.

MOSCOW (Sputnik) — BRICS countries will sign agreement on mutual loans in national currencies at the upcoming summit in China, Nikolay Tsekhomskiy, the first deputy chairman of the Russian state development bank Vnesheconombank (VEB), told Sputnik in an interview.

“The platform [BRICS summit] is truly interesting, we learn about the development of banks, new products. But the main thing is the planned signing of two important documents at the summit — about mutual loans in national currencies and mutual acceptance of credit ratings,” Tsekhomskiy said.

The New Development Bank (NDB) of BRICS wants to place some $250-million-worth ruble bonds in Russia, Nikolay Tsekhomskiy added.

“They [NDB] have plans to place bonds in Russia … they want to place some $250-million-worth [bonds] for the first time,” Tsekhomskiy said.

He point out that the NDB was interested in placing the ruble bonds.

“Yes, they are interested in entering the Russian market with rubles and to use these rubles for financing projects in Russia, in other words to use its high rating to attract money even cheaper than the VEB. Maybe even cheaper than Russia as their rating is higher than ours,” Tsekhomskiy added.

The VEB deputy chairman said that the memorandum on cooperation on credit ratings would mean the exchange of information within BRICS about internal credit ratings and rating methodology. The exchange would be carried out confidentially and at request.

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