Russian Finance: Russia, South Africa and India are preparing to enter BRICS Bank in the domestic debt markets

Russia, the Republic of South Africa and India are preparing to enter the new BRICS Development Bank to the domestic debt markets of these countries, Deputy Finance Minister Sergei Storchak said.

«This issue is always on the agenda because it is of course understood that borrowers from national jurisdictions are those institutions that use local currency to trade, and in our case, the ruble, they prefer not to,» Storchak, who participated in the third annual meeting of the new development bank, told reporters.

Carry currency risk, it is well known that Russia, South Africa and India are preparing to allow the bank to access its domestic debt market, we have already taken the appropriate decision”.

Storchak explained that the issue is any credit rating the bank will bring to the new jurisdiction and, therefore, how it will be evaluated by investors.

We have already met in Washington with all three rating agencies, and they have some comments, and I do not think these comments are fairly substantial, but as long as Talks are going on, we will not reveal them”.

At the same time, Storchak pointed out that the issue of lending in national currencies is not far-fetched, but rather near-term.

Brix Group’s new Development Bank president, Kondabur Faman Kamath, confirmed at the final press conference that access to the local debt market depended on receiving the rating of international credit rating agencies.

According to him, the bank hopes the rating will be received by the end of July this year.

The bank has already received the highest rating of AAA from the Chinese rating agencies — Qing Tsin International Credit Rating and Lianhua Credit Rating.

Currently, a rating is being made for the «Big Three» rating agencies, which will allow The Bank to enter the international capital market.

The Shanghai-based Brix, a new development bank, was established in July 2014 with a paid up capital of $ 10 billion, at $ 2 billion per member country.