Brazil says BRICS bank may back low-cost loan fund to fight hunger

Brazil’s social development minister, Wellington Dias, said the New Development Bank may take a leading role in a proposed fund intended to widen access to affordable credit for poor households in Africa and Latin America. The fund could be launched by the end of this year, he said.

The plan would use guarantees to help make loans cheaper for families with limited incomes. Such guarantees can reduce the risks lenders face when extending credit, potentially allowing borrowers who might otherwise struggle to qualify to obtain financing on more accessible terms. Dias did not provide details of the fund’s size, financing structure or participating lenders.

The New Development Bank, established by the BRICS countries and headquartered in Shanghai, would make its first financial commitment to Brazil’s global anti-hunger alliance through the initiative, according to Dias. The bank was created by Brazil, Russia, India, China and South Africa to support development, including infrastructure and other projects in emerging economies.

Brazil has promoted the alliance as an international effort to address hunger and poverty. Its proposed collaboration with the bank would extend that work into access to finance, with families in Africa and Latin America identified as the intended beneficiaries. The announcement signals a possible role for a multilateral development lender in helping turn the alliance’s aims into a practical financing mechanism.

Dias discussed the proposal on the sidelines of the United Nations General Assembly. The gathering brings national leaders and officials together in New York for discussions on global issues, providing an opportunity for governments to seek support for international initiatives. The minister’s remarks suggest negotiations or planning are under way, though he did not set out a detailed timetable beyond the possibility of a launch before the year ends.

The alliance has faced a less prominent position during this year’s Group of 20 proceedings, which are being led by the United States. The source account characterized the initiative as sidelined under Washington’s G20 presidency; it did not give further details about the reasons or describe specific decisions affecting the program.

A launch would represent an early concrete step by the New Development Bank in support of Brazil’s anti-hunger effort. Further information—including the fund’s governance, the amount of capital involved and how eligible families would apply—was not disclosed in Dias’s remarks. The proposal’s next stage is therefore expected to depend on whether the bank and other potential participants agree on the structure and guarantees needed to make the loans affordable.