Fin24

Brics to receive 10bn yuan in loans

2011-04-14 09:33

Sanya -  China Development Bank, which just signed a local currency credit deal with its Brics counterparts, is ready to pump up to 10bn yuan as loans into Brazil, Russia, India and South Africa, the bank's governor said.

Chen Yuan, the bank's head, said the yuan loans, as part of the Brics efforts to reduce the use of US dollar in bilateral trade and investment, would focus on big projects in oil, natural gas and infrastructure fields.

The development banks of the five Brics nations agreed in principle on Thursday to establish mutual credit lines denominated in their local currencies, not in dollars.  

He told a press conference that the bank aims to deepen cooperation with Brazilian state-run oil company Petrobras following the existing $10bn loan arrangements.

Chen's bank, a state bank created to support large infrastructure projects at home and to back Chinese businesses venturing abroad, has lent $141.3bn in overseas markets as the end of 2010, in which $38bn worth loans were made to Brics markets.

Chen said the non-performing loan ratio in its overseas loans was less than 1%.

Comments
  • Nasdaq7 - 2011-04-14 15:13

    Well then the SA government should make immediate use of the loans - give it preferably to SA's entreprenurs. Lets get this economy going.

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