BRICS signs deal on using own currencies for credit, grants

Ajay Kaul
Sanya (China), Apr 14 (PTI) In a significant step
towards enhanced economic cooperation, India, China, Russia,
Brazil and South Africa on Thursday signed an agreement that
will enable them to provide credit to each other in local
currencies and collaborate in capital markets and other
financial services.
The Agreement was signed by the designated banks of
the five countries at a Summit of Brazil-Russia-India-China-
South Africa (BRICS) here which was attended by Indian Prime
Minister Manmohan Singh.
The pact was signed in tune with the BRICS countries'
commitment to increased cooperation in economic, finance and
trade matters to support their sustained national economic
growth and contribute to the "long-term steady, sound and
balanced growth of the world economy."
"Our designated banks have signed a framework
agreement on financial cooperation which envisages grant of
credit in local currencies and cooperation in capital markets
and other financial services," Prime Minister Singh announced
at a joint press conference along with Chinese President Hu
Jintao, Russian President Dmitry Medvedev, Brazilian President
Dilma Rousseff and South African President Jacob Zuma.
Earlier, addressing the Summit, Singh said the
challenge before the BRICS countries was to harness the vast
potential that exists among them as all are rich in resources,
material and human.
"We have the opportunity to give concrete meaning to
the concept of sustainable and balanced development, and
produce innovative models of development," he said.
Singh said India stood ready to work with other BRICS
countries to realize these goals.
"Our economy is more open and more connected to the
world than it has been in the past. Our financial and capital
markets are sound, and eager to absorb foreign direct
investment.
"We have put in place ambitious schemes for the social
and infrastructure sectors which have begun to bear fruit. The
creative energies of our people have been unleashed. The
economy is well on its way to a long term annual growth rate
of more than nine per cent," the Prime Minister told the
leaders of other fast emerging economies.
He remarked that BRICS had travelled a long distance
in a short span of two years since the first Summit in 2009.
Referring to the international economic and financial
situation, he said the "quality and durability" of the
recovery process in the aftermath of the 2008 crisis "depends
to a great measure on how the BRICS economies perform."
He said the BRICS countries had reason to be satisfied
with the management of their economies, "but there is no room
for complacency."
Singh said the BRICS countries, as members of the
G-20, closely cooperate with the rest of the world. "We will
continue to do so as we prepare for the next G-20 Summit in
France."
The Sanya Declaration, adopted at the Summit, said,
"the world economy is gradually recovering from the financial
crisis, but still faces uncertainties."
The BRICS countries asked major economies to continue
to enhance coordination of macro-economic policies and work
together to achieve strong, sustainable and balanced growth.
Referring to the next G-20 Summit to be held in
France, the Declaration said the BRICS countries expected "new
positive" outcomes in the fields of economy, finance, trade
and development.