Saturday, April 26, 2014

South Africa a Customer for new BRIC's Development Bank?

The BRICS Post runs this article suggesting that state owned enterprises (SOE's) in South Africa might become customers for the new BRICS Bank.

Here is the relevant portion of the article:

"In response to a question from The BRICS Post on whether the SOEs would access finance from the proposed BRICS Development Bank, Gigaba said that this was an option that would be looked at, but the rates charged would have to be competitive with that available to the SOEs in international capital markets.

“Transnet and Eskom have access to the international capital markets, so that sets the bar for what the BRICS Development Bank needs to compete with,” he said.
The BRICS Development Bank was approved at the 2013 BRICS Summit in Durban, South Africa. The next BRICS summit is to be held in Brazil in July 2014, but a firm date has not yet been finalised.
South Africa has been enhancing its trade and investment ties with other BRICS member countries and trade with these countries account for a fifth of South Africa’s total foreign trade."

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