The New Development Bank-backed fund is modeled on the World Bank's Multilateral Investment Guarantee Agency (MIGA), which aims to address global investment shifts spurred by the US economic policy.
The proposed BRICS Multilateral Guarantee (BMG) mechanism has received technical approval from member states and now needs the approval of BRICS finance ministers, one of the sources said.
The initial funding value has not been disclosed, but the New Development Bank is expected to mobilize $5 to $10 in private capital for pre-approved projects for each dollar in guarantees provided by the BRICS bank.
Technical preparations for the creation of the fund are expected to be finalized by the end of 2025, so that pilot projects could receive guarantees in 2026, the news agency reported.
The 17th BRICS summit will take place in Rio de Janeiro from July 6-7. Russian President Vladimir Putin will participate in the BRICS summit's plenary session via a video link, while Foreign Minister Sergey Lavrov will attend the summit in Brazil in person.