a day ago
Brics to launch guarantee fund to boost investment in member nations, sources say
The Brics group of developing nations is set to announce a new guarantee fund backed by the New Development Bank (NDB) to lower financing costs and boost investment, two people familiar with the matter told Reuters.
The initiative, modeled on the World Bank's Multilateral Investment Guarantee Agency, aims to address global investment shifts amid uncertainty surrounding US economic policy, the sources said on condition of anonymity.
Brazilian officials view the fund as the centerpiece of the Brics financial agenda during the country's rotating presidency. The fund is expected to be mentioned in the joint statement at the Brics summit in Rio de Janeiro next week, said the sources.
Originally formed by Brazil, Russia, India and China, the Brics group later added South Africa and recently expanded to include other developing nations to increase its influence in global governance.
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.
