04-07-2025
Brics to launch guarantee fund to boost investment in member nations, sources say
The proposed Brics multilateral guarantee mechanism, incubated within the NDB, has received technical approval from member states and awaits final signoff from Brics finance ministers, considered a formality, one source said.
Brazil's finance ministry declined to comment on the matter.
The initiative will not require additional capital from member countries at this stage. Instead, it aims to channel existing NDB resources to projects in developing nations.
No initial funding value has been disclosed, but officials involved in the talks expect each dollar in guarantees provided by the NDB to mobilise between $5and $10 (R87.50 and R175) in private capital for pre-approved projects.
"This is a politically significant guarantee instrument. It sends a message that Brics is alive, working on solutions, strengthening the NDB and responding to today's global needs," one source said.
Technical preparations setting up the fund are expected to conclude by the end of this year, paving the way for pilot projects to receive guarantees in 2026.
Brics countries face challenges common to developing nations in attracting large-scale private investment in infrastructure, climate adaptation and sustainable development.
Officials argue guarantees issued by the NDB, whose credit rating is higher than that of most member countries, could help mitigate perceived risks for institutional investors and commercial banks.
