OREANDA-NEWS. April 15, 2011. During the Summit of BRICS Heads of State in the presence of BRICS countries’ heads of State, heads of banks participating in the Memorandum on Cooperation between BRICS Countries State Financial Development and Export Promotion Institutions in the city of Sanya (the PRC), State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, the Brazilian Development Bank (BNDES), the China Development Bank (the CDB), Eximbank of India, and the Development Bank of Southern Africa signed an Agreement on Financial Cooperation within the BRICS Cooperation Mechanism.

The Agreement provides for expanding financial cooperation and extending credit lines in national currencies on a mutual basis including on the BRICS countries’ capital markets.

This is a framework agreement and it stipulates that limits, using and servicing credit lines in national currencies are to be regulated by individual bilateral credit agreements to be concluded by banks participating in the BRICS Interbank cooperation mechanism.

The Agreement aims to enhance financial cooperation between partner banks, provide support for financial institutions and companies upon entering BRICS countries’ capital markets and would also help to promote trade-economic relations and increase the turnover between these countries.

The signing of this Agreement is the first practical step in using national currencies to promote mutually beneficial cooperation within the BRICS.

The BRICS interbank cooperation mechanism was formed as a result of signing the Memorandum on Cooperation between BRICS Countries State Financial Development and Export Promotion Institutions in 2010.

The authorized Development Bank of Southern Africa joined the Memorandum on April 13, 2011.

The Memorandum’s main objectives are to enhance all-round, long-term interbank cooperation between partners, promote trade-economic ties between the BRICS countries and provide support for implementing socially important and regional projects.

BRICS countries’ authorized banks are the Brazilian Development Bank (BNDES), State Corporation ‘Bank for Development and Foreign Economic Affairs (Vnesheconombank)’, the China Development Bank, Eximbank of India , the Development Bank of Southern Africa.