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Cabinet approves MoU between Exim Bank, New Development Bank | Canindia News

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Cabinet approves MoU between Exim Bank, New Development Bank

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CanIndia New Wire Service 0 comments

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New Delhi, Oct 13 (IANS) The Union Cabinet here on Thursday approved the signing of a Memorandum of Understanding (MoU) between New Development Bank (NDB) and Export Import Bank of India (Exim Bank) for general cooperation through the BRICS Interbank Cooperation Mechanism, an official statement said.

Five banks from the BRICS (Brazil, Russia, India, China and South Africa) nations had established the BRICS Interbank Cooperation Mechanism to enhance trade and economic relations amongst the BRICS countries and enterprises.

“The proposal will enhance trade and economic relations among the BRICS countries. There is no financial implication involved with signing of the MoU,” a Finance Ministry statement said.

“The participating institutions from the BRICS nations will be benefitted by this MoU,” it added.

The MoU is a non-binding umbrella agreement aimed at establishing a cooperation framework in accordance with the national laws and regulations, besides skills transfer and knowledge sharing amongst the signatories.

Further, establishment of the New Development Bank of BRICS reflects the close relations among the member-countries and provides a powerful instrument for increasing their economic cooperation and helps India play an enhanced international role.

Therefore, keeping in view the strategic relevance of cooperation for sustainable development and inclusive economic growth, the signing of the MoU is necessary in the context of cooperation extended by the members in various forms for promoting and facilitating trade of goods and services as well as investments in mutual projects among the BRICS countries, it said.

–IANS

mm/ss/vt

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