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BRICS Bank Approved A Project To Support The Development Of Small Cities In Russia For €205 Million

BRICS Bank Approved A Project To Support The Development Of Small Cities In Russia For €205 Million

It's worth noting that the project will contribute to economic development, create jobs, and new businesses by improving urban infrastructure, as well as increasing the significance of cultural heritage sites.

The new BRICS Development Bank (NDB) has approved a sovereign loan of €205 million to Russia for the socio-economic development, promotion, and preservation of the cultural heritage of eight small cities of historical significance. The corresponding decision, according to the Bank's press service published on Wednesday, was made by the Board of Directors of the financial organization at a meeting in a virtual format on June 29.

This loan, the Bank said, is a continuation of the already implemented program to support small cities. The first project with a funding volume of $ 220 million for the socio-economic development of a number of small cities with historical heritage in the Russian Federation was approved by the BRICS Bank in May 2018.

"The second phase of the small historic city development project will focus on urban development through the preservation and development of cultural heritage in order to increase tourism-related revenues and improve the municipal economy of eight small cities located in the European part of Russia. The project will contribute to economic development, job creation, and new businesses by improving urban infrastructure, as well as increasing the significance of cultural heritage sites," the press release said. The document specifies that the project implementation period is six years.

At the same meeting, the Bank's Board of Directors approved a project to support the development of the education system in the Brazilian city of Teresina. The amount of the sovereign loan will be $50 million.

Logical continuation

Vice-President of NBR Vladimir Kazbekov approved the draft infrastructure financing of small Russian cities and villages with historic heritage - a logical continuation of the first similar project, implemented by the Bank jointly with the Ministry of culture in 2018.

"Eight small cities were selected to participate in the new project Azov, Belev, Galich, Yelets, Zaraysk, Kasimov, Kineshma, and Shuya. This will be a serious addition to the list of cities that have already started implementing the "first stage" of the project. It includes Torzhok, Vyborg, Gorokhovets, Chistopol, Rostov Veliky, Suzdal, Staraya Russa, Arzamas, and Tutaev," he said.

According to Kazbekov, the project provides not only comprehensive improvement of the urban environment and infrastructure but also the restoration of historical sites, increasing tourist attractiveness, creating conditions for the development of small and medium-sized businesses. "The list of objects that can be restored is being prepared. There are interesting and promising objects in each of the cities," he said.

"We consider the participation of the New Development Bank in preserving the centuries-old historical and cultural heritage of Russia very important. The project will make small historical cities and settlements more comfortable to live and stay in, and will help their economic development by updating and developing infrastructure, including infrastructure for tourism, " said the Vice-President of the NBR.

The BRICS Bank

The New Development Bank was established by the BRICS countries on the basis of an intergovernmental agreement signed at the sixth summit of the organization in Fortaleza in July 2014. The Bank's goal is to finance infrastructure and sustainable development projects in BRICS countries and developing countries. The Bank has previously received international credit ratings at the level of "AAA+" from Fitch Ratings and S&P Global Ratings, which allow it to effectively attract long-term funding in the international and local capital markets.

To date, the BRICS Bank has approved 58 projects totaling $18.5 billion, including three sovereign loans under the program to help the Bank's member countries fight the new coronavirus disease, which has already been received by China, India, and South Africa.

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