BRICS countries decide to set up bond fund - Russia’s finance minister

SHANGHAI, June 19. /TASS/. BRICS member-states (Brazil, Russia, India, China and South Africa) have agreed to set up a bond fund worth $10 bln for countries with low-level debt issues. The share of Russian participation in the project will amount to 18%, the country’s Finance Minister Anton Siluanov said at the meeting of BRICS finance ministers and central banks’ heads in Shanghai on Monday. "We’ve discussed standard macroeconomic issues, the situation in the BRICS member-states, the New Development Bank, (plans) to promote new projects," Siluanov said. "Particularly, the issue of creating a new bond fund has been discussed. National banks should participate in the fund, which will be worth $10 bln with certain quotas," he said, adding that the fund is being established for supporting the debt markets of BRICS member-countries. "The proposal has been initiated during China’s chairmanship, and (Russia’s) regulator, the Central Bank, did not object to the decision," the Minister said. According to Siluanov, the fund is unlikely to play a substantial role for Russia, taking into account its bond issuance. "We will soon issue our $3 bln," he said, adding that the planned fund "is more of an insurance mechanism for the countries with a low level of debt issues." "The 18% share is not substantial for Russia," the Minister said. The plan is that China will be the fund’s biggest investor with a $3.5 bln share. Russia, Brazil and India will invest $1.8 bln each, the rest of funds will be received from South Africa. BRICS is an informal association of five major emerging national economies founded in June 2006 at the St. Petersburg International Economic Forum, known as BRIC prior to inclusion of South Africa in 2009. Russia was presiding in BRICS in 2015 and was chairing the BRICS Business Council until April 2016. Read more