Brics draws up new guarantee fund to boost investment

The BRICS grouping 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.

- Reuters

The initiative, modelled on the World Bank’s Multilateral Investment Guarantee Agency (MIGA), 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 centrepiece 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.