OREANDA-NEWS. September 12, 2016. The Memorandum of Understanding signed in Washington formalizes the interest of both financial institutions in working together and exchanging knowledge and resources to support infrastructure and sustainable development.

CAF - Development Bank of Latin America - and the New Development Bank (NDB) established by BRICS nations signed today a cooperation agreement to explore opportunities for joint work and the exchange of knowledge and experience.

The Memorandum of Understanding was signed in Washington by CAF Executive President Mr. Enrique Garc?a and NDB President Mr. K.V.Kamath on the sidelines of the XX Annual CAF Conference.

"We've taken an extremely significant step towards embracing links between institutions, which show generation of a new financial architecture to support more effectively development in our countries, especially in the dynamic and challenging actual context", explained CAF?s President. "Initiatives such as this one increase the abilities and exploitation of opportunities which benefit sustainable development projects through better financial conditions and good practices that contribute to reducing social gaps", he stated.

"It is a matter of great pleasure to sign this memorandum that establishes a framework for our collaboration and joint work", said Mr. K.V.Kamath. "This partnership will enable NDB to harness CAF's profound experience in Latin America and help us strive towards our common development goals. The NDB will listen, learn, collaborate and contribute. We aim to make a positive difference by complementing the efforts of existing multilateral development banks".

The agreement lies in line with both financial institutions' interests, reflecting the growing influence of emerging economies in the international financial architecture.

The purpose of the cooperation agreement is to explore and carry out complementary work in strategic areas with real potential, including sustainable infrastructure, energy, water and sanitation, and the environment. It also opens the possibility of co-financing development projects in countries of mutual interest, providing technical assistance, and promoting the exchange of knowledge and institutional capacities through seminars and workshops.