BRICS banks to discuss responsible financing & support measures during Covid-19 crisis

The development banks of the BRICS trade bloc will meet on Monday to adopt joint principles for responsible financing and to discuss measures for combatting the global coronavirus pandemic.

The annual joint Financial Forum of the BRICS Interbank Cooperation Mechanism and the New Development Bank (NDB) will be held in Moscow at 2:00pm GMT via videoconference.

The chairman of Russian bank VEB.RF, Igor Shuvalov, will be joined by the president of the NDB, Marcos Troyjo; the president of China Development Bank, Ouyang Weimin; the president of the Brazilian Development Bank, Gustavo Montezano; the chairman of Development Bank of South Africa, Enoch Godongwana; and the managing director of India’s Export-Import Bank, David Rasquinha.

The member-banks are expected to sign the jointly developed principles for responsible financing based on the world's best practices and OECD standards. Among those are the integration of economic, environmental and social progress in the assessment of investment projects, plus more attention to initiatives that help to develop local communities, promote inclusive economic models, and so on. The participants will also discuss green financing, public-private partnership projects, and innovation policies.

The Shanghai-based NDB, which was established in 2014, provides funding for infrastructure and sustainable development projects in emerging economies. With capital of up to $100 billion, it aims to continue issuing financial products denominated in the local currencies of its member countries – China, Russia, Brazil, India, and South Africa.

In April, the bank established the Emergency Assistance Facility to meet the needs of its member countries. Emergency loans could be used to finance direct expenses related to the fight against the Covid-19 pandemic, or to provide support for government measures contributing to economic recovery.

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