BRICS to create credit rating agency to rival Fitch, others – Watch

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BRICS to create credit rating agency to rival Fitch, others – Watch

7:45 CAT | 17 Oct 2016

Africa News / (From left) Brazilian President Michel Temer, Russian President Vladimir Putin, Indian PM Narendra Modi, Chinese President Xi Jingping and South African President Jacob Zuma in Goa

The so-called Brics countries – Brazil, Russia, India, China and South Africa have agreed to fast-track the setting up of their own credit-rating agency to better cater to developing economies, revelling existing ones based in Western countries.

India Prime Minister Narendra Modi said they agreed to move ahead on the ratings agency, although there was no timetable announced for its formation.

The five member countries also vowed to forge closer trade ties at the end of their annual summit in Goa.

The global economic recovery remains fragile. Global trade and investment have slumped. Commodity prices continue to fluctuate.
Leaders approved a raft of measures in Goa including a promise to better fight tax evasion. They also agreed to set up a new credit ratings agency.

Earlier, China’s President Xi warned that anti-globalisation and increasing protectionism was putting the world economy at risk.

“The global economic recovery remains fragile. Global trade and investment have slumped. Commodity prices continue to fluctuate. The underlying problems, which could trigger a global financial crisis, have not been solved.” he added.

Myanmar’s Aung San Suu Kyi was also in Goa for talks as leaders pledged to work closer on combating ‘‘cross border’‘ terrorism.

However, India’s guests shied away from criticising arch-rival Pakistan, despite pressure from New Delhi.

BRICS was formed in 2011 with the aim of using members’ growing economic and political influence to challenge Western hegemony.