India pitches for independent BRICS credit rating agency - Hindustan Times
close_game
close_game

India pitches for independent BRICS credit rating agency

Press Trust of India, Washington/New Delhi | ByPress Trust of India
Apr 20, 2018 06:00 PM IST

Economic Affairs secretary Subhash Chandra Garg sought the support of the Presidency in building consensus amongst the BRICS membership on the BRICS Rating Agency proposal.

India has pressed the BRICS nations to set up an independent rating agency of the five-member group.

Moody’s representatives call on the Secretary, Department of Economic Affairs Subhash Chandra Garg, during his ongoing visit to participate in the Spring Meetings of World Bank & IMF, in Washington DC on Wednesday.(PTI Photo)
Moody’s representatives call on the Secretary, Department of Economic Affairs Subhash Chandra Garg, during his ongoing visit to participate in the Spring Meetings of World Bank & IMF, in Washington DC on Wednesday.(PTI Photo)

The first meeting of the BRICS finance ministers and central bank governors was held on the sidelines of the IMF/World Bank Spring Meetings on Thursday.

Hindustan Times - your fastest source for breaking news! Read now.

Representing India in the meeting of the 5 nation bloc, Economic Affairs secretary Subhash Chandra Garg sought the support of the Presidency in building consensus amongst the BRICS membership on the BRICS Rating Agency proposal.

“He requested the Presidency to receive and take forward the report to be submitted by expert group set up under the aegis of BRICS Business Council to study the feasibility of the BRICS Rating Agency,” the finance ministry said in statement.

India had first mooted the idea of having such an agency for the BRICS (Brazil, Russia, India, China, South Africa) grouping, which could solve impediments for the emerging market economies posed by the present credit rating agency market dominated by S&P, Moody’s and Fitch.

These three western rating agencies hold over 90% of the sovereign ratings market. The other issues discussed during the meeting related to enhancing the project pipelines of New Development Bank (NDB) evenly across member countries, expansion of NDB’s membership.

The BRICS countries have already set up New Development Bank, which became operational in 2015, to meet funding requirements of the members

It also deliberated on the proposal of the South African Presidency for setting up a working group on illicit financial flows and a BRICS Task Force on Public Private Partnership.

Issues related to BRICS Contingent Reserve Arrangement (CRA) as well as BRICS Bond Fund were also discussed, the ministry said.

In his interventions, Garg emphasised that India has been a constructive participant to the discussions on NDB’s membership expansion.

He expressed that a more careful and cautious approach on the value and addition/ benefits new member will bring to the Bank would be desirable rather than setting deadlines which are practically difficult to achieve.

On the issue of expansion of NDB’s project pipeline across member nations evenly, Garg said the objective has to be balanced with member country’s requirement for infrastructure financing.

Garg also suggested that since NDB already has a project preparation fund hence a separate similar preparation fund for PPP will not be desirable.

Unlock a world of Benefits with HT! From insightful newsletters to real-time news alerts and a personalized news feed – it's all here, just a click away!- Login Now!
Stay informed on Business News along with Gold Rates Today, India News and other related updates on Hindustan Times Website and APPs
SHARE THIS ARTICLE ON
Share this article
SHARE
Story Saved
Live Score
OPEN APP
Saved Articles
Following
My Reads
Sign out
New Delhi 0C
Tuesday, March 19, 2024
Start 14 Days Free Trial Subscribe Now
Follow Us On