BRIC, a bloc of Russia, China, India, Brazil and South Africa, has agreed to set up a joint currency-denominated fund to ensure the investment climate.
“We have agreed to promote the development of domestic bond markets, as well as to establish a common currency bond fund in the BRIC countries,” said a statement issued by the BRICS summit in China.
The fund’s objective is to ensure investment stability in BRIC countries and to stimulate debt markets in these countries.
The Fund will help to develop and strengthen the liquidity of bond markets and reduce the cost of financing, including through increased participation of foreign capital.
Russian President Vladimir Putin called for a boost in national currency lending within the bloc and for the new development bank to receive an international credit rating, which would give it the right to issue bonds in the markets of these countries.
The BRIX countries occupy 39.7 million square kilometers of land in the world, with a GDP of $ 16.8 trillion and a population of 3 billion.
