“This new platform will promote stronger investment ties between China and Latin America and the Caribbean, helping our region overcome some of the most important development challenges,’’ said IDB President Luis Alberto Moreno.
(PRWEB) March 19, 2012
The Inter-American Development Bank (IDB) and the Export-Import Bank of China (China Eximbank) are advancing in the creation of an investment platform for Latin America and the Caribbean that will mobilize as much as $1 billion for equity investments to promote sustainable economic development in the region.
The investment platform is expected to be operational this year following a letter of intent signed between the IDB and China Eximbank in 2011, when both institutions announced they intended to establish an investment mechanism to finance public and private sector projects in the IDB’s 26 borrowing member countries in Latin America and the Caribbean.
The IDB will provide a $150 million loan to the new China Latin America and the Caribbean investment platform while China Eximbank will provide an equal amount of investment.
“This new platform will promote stronger investment ties between China and Latin America and the Caribbean, helping our region overcome some of the most important development challenges,’’ said IDB President Luis Alberto Moreno. “This partnership is an example of how the IDB can play a pivotal role in increasing cooperation between our region and China to promote greater trade and investment.”
Liu Liange, Vice President of China Eximbank, said “the demands and aspirations in economic and technical cooperation between China and Latin America and the Caribbean are growing gradually. IDB and China Eximbank have undertaken this initiative to develop an investment mechanism to meet the common interests of Latin America, the Caribbean and China.” Mr. Liu indicated that the mechanism will demonstrate the principle of “co-governance.” The two banks will work together to promote prosperity in the region.