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BRICS New Development Bank may finance two projects In Russia

The BRICS New Development Bank is considering extending a loan for two projects in Russia.

 

Russian Finance Minister, Anton Siluanov has confirmed that the BRICS New Development Bank is considering extending a loan for two projects in Russia: the Amur gas processing plant (GCP) and the petrochemical plant in Tobolsk. The Finance Minister says: “The New Development Bank is currently considering in respect of possible financing the application of Sibur Company for construction of the petrochemical plant in Tobolsk and the Amur GPP construction project, implemented in the context of the Power of Siberia gas pipeline construction agreement,”

However, the decision on participation of the bank in these projects has not yet been taken and applications have not been presented to the NDB Board of Directors. The Finance Minister stated that “the applications undergo review by the management of the Bank and proactive consultations with potential borrowers are held. If all conditions are negotiated, the issue of credit extension can be considered by the end of this year.”

The Amur GCP is scheduled for commissioning in 2021 at the earliest. The gas chemical plant will process fractions of the natural gas. The main feedstock supplier for the GCP will be the Amur Gas Processing Plant of Gazprom, which will be built within the framework of gas supplies to China over the Power of Siberia gas pipeline.

 

MOSCOW, May 21. /TASS/.
Russian News Agency

http://tass.com/economy/1005443

Why the Brazilian interest rate was cut to a record low

The board of directors of the Central Bank recently decided to cut the basic interest rate for the Brazilian economy, known as Selic (The Sistema Especial de Liquidação e Custodia (SELIC). The rate was reduced from 7% to 6.50% per year, reaching the lowest recorded rate since it was first set in 1986.

According to Reuters, the Central Bank has indicated that it will continue cutting interest rates at its May meeting.
“Unless the Brazilian real comes under pressure for domestic or external reasons, the Central Bank will be in no hurry to begin the tightening cycle,” economists at Societe Generale wrote in a report.

The Brazilian government has attributed this calculated condition to numerous factors, including fiscal adjustments, public spending ceiling and a general more positive economic stance.

A lower interest rate is good news for the consumer because it means better access to jobs, stronger economic growth and greater access to credit.

Source : Reuters, www.brazilgovnews.gov.br

BRICS bank loans favour technological innovation projects: VP

Displayed with permission from China Daily

The BRICS New Development Bank (NDB) is interested in lending to technological innovation projects, the bank’s vice president Zhu Xian said Saturday at a financing forum held in east Chinese city of Xiamen.

Established to meet emerging economies’ funding needs, the multilateral lender approved loans worth $1.5 billion last year, mainly to finance clean energy and infrastructure developments in BRICS countries – Brazil, Russia, India, China, and South Africa.

The BRICS share of the world economy shot up from 8.2 percent in 2002 to 22.2 percent in 2015. The BRICS now represents two thirds of the developing world’s economy.

Zhu said the bank aims to foster technological innovation in developing nations through its financing, capability building, and knowledge sharing.

He said such lending priority will set the bank on a new path different from the one taken by traditional multilateral financial institutions.

The developing nations account for more than 35 percent of the world economy, but lacks an equal share of deciding power in traditional multilateral lenders, Zhu said. Trillions of fund is needed every year as the developing world strives to upgrade industries and develop new energy sector.

“That will be the priority of BRICS NDB and Asian Infrastructure Investment Bank (AIIB),” Zhu said.

He said China has accumulated rich experience in technological innovation on infrastructure projects and is open to share such experience with other developing nations.

“We will frame the BRICS NDB as a knowledge bank, through its project financing and knowledge sharing,” Zhu said.

The BRICS NDB was established in 2014 with an initial fund of $100 billion pooled from five BRICS countries. The bank was launched in Shanghai in July 2015 and issued its first loan in April 2016.

-Repubhub

What does the BRICS Bank’s Leslie Maasdorp say about Trump’s policies?

The Vice President of the BRICS Bank (New Development Bank), Lesley Maasdorp shared his thoughts on newly-elected President Donald Trump’s ‘inward-looking policies’, hoping that he is open to reviewing.

[WATCH]

 

Clip courtesy of SABC Digital News YouTube