BRICS countries plan to establish a guarantee fund to reduce financing costs and promote investment among member states, with the multilateral guarantee mechanism supported by the New Development Bank receiving technical approval.
Source: Economic and Commercial Office of the Embassy of the People's Republic of China in the Republic of South Africa
According to a report on the South African Engineering News website on July 4, informed sources revealed that the BRICS group may announce the establishment of a new guarantee fund supported by the New Development Bank (NDB) to reduce financing costs and promote investment. Sources indicated that the proposal for the BRICS Multilateral Guarantee (BMG) mechanism, developed internally within the NDB, has received technical approval from member countries and awaits final endorsement by BRICS finance ministers. Modeled after the World Bank's Multilateral Investment Guarantee Agency (MIGA), the mechanism aims to address shifts in global investment amid uncertainties in U.S. economic policies. Preparatory work is expected to be completed by the end of this year, paving the way for pilot projects to receive guarantees by 2026.