The president of BNDES (Brazilian Development Bank), Luciano Coutinho, and the presidents of the development banks of China, Russia, India and South Africa, countries that together form the block known as BRICS, signed two agreements that open a way for the intensification of economic relations between the emerging potencies.

The umbrella agreement (Master Agreement) defines the mechanisms for the five signatory institutions to negotiate loans in local currency.  The goal is to expand financial cooperation and the expansion of trading and investment between the countries. But the Letter of Credit Agreement determines the conditions for the adoption of mechanisms that allow the confirmation of letters of credit for export operations. The development banks pledge to discuss, case by case, bilateral instruments for the concession of a letter of credit.

The agreements are valid for five years. The signing took place during the Fourth Meeting of the BRICS Leaders, in New Delhi, India.

30 March 2012