Russian finance minister Anton Siluanov said the country will keep plans to create an alternative payment system and that the mechanisms could operate in bilateral or trilateral formats
The Minister of Finance of Anton Siluanov, said on Saturday (5) that, even without consensus of all members of the the country will keep the plans to create an alternative payment system to the In international transactions. Siluanov stated that the mechanisms can work even if they involve bilateral or trilateral formats. “It is under discussion is the creation of a new investment platform. So far, the BRICS members have not reached a complete agreement about it. But it is a discussion in progress. We will follow this way with the countries interested. We need not achieve consensus on certain financial decisions,” said the minister.
“There is a possibility that purchases of titles between two or three countries can be resolved without consensus. These mechanisms would be launched and new members would join them. So work is underway. In some questions, faster, in others, slightly slower,” he added. The final statement of the BRICS Central Bank Finance Ministers and Directors Meeting has separated only one topic on the subject. In the document, it is said that there is progress “in identifying possible ways to support the continuation of discussions about the potential for greater interoperability of payment systems.”
There is therefore no mention of agreement on what these alternative systems would be like. It is only said that the technical report produced on the theme “reflects the preferences revealed by members and should play a key role in our efforts to facilitate rapid, low -cost, more affordable, efficient, transparent and safe transponentities between BRICS countries.”
Reinsurance and Risks
Another theme that was highlighted by the Russian Minister of Finance during a press conference was the creation of a Warranty Mechanism based on the Novo Development Bank (NDB). Member countries intend to establish an initiative called BRICS Multilateral Guarantees (GMB) to mobilize private investments in infrastructure and sustainable development. As a result, the expectation is to offer instruments to reduce the risk of strategic investments and improve credibility in BRICS and the global south. A pilot initiative is expected to be developed in 2025.
The creation of a group reinsurer, linked to the NDB, is seen as a strategic measure by the group. “Although the volume of transportation and the volume of trade between our countries grow each year, there is a need to create an independent insurer. We have already proposed specific mechanisms for the creation of a dryer, by analogy with the banking activities of such an international organization, as we see that the capacity of insurance to achieve this goal is not enough.
“We propose to fill this vacuum to dry out different risks, such as logistics risks, risks related to climate construction and risks. This has been discussed by many participants today and we prefer that this organization is constituted as an international equity organization that will be integrated by stakeholders, and that this company will dry out the risks of companies that work in the member countries,” he added.
*With information from Agência Brasil
