By IRNA,
New Delhi : India, China, Russia, Brazil and South Africa on Thursday signed an agreement that would enable them to provide credit to each other in local currencies and collaborate in capital markets and other financial services.
The Agreement was reached as a significant step towards enhanced economic cooperation.
The domument was signed by the designated banks of the five countries at a Summit of Brazil-Russia-India-China-South Africa (BRICS) at Sanya in China.
Indian Prime Minister Manmohan Singh was also present in the summit, pti reported.
The pact was signed in tune with the BRICS’ commitment to increase cooperation in the economic, financial and trade fields 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 in the day, the Indian premier said in an address to the Summit that the challenge before the BRICS countries was to harness the vast potential that existed among them as all were 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 added India stood ready to work with other BRICS countries to realize their 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 also 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, have closely cooperated with the rest of the world.
‘We will continue to do so as we prepare for the next G-20 Summit in France,’ he stressed.
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.