CALGARY, Canada –The Inter-American Development Bank (IDB) and the Export-Import Bank of China (China Eximbank) signed a letter of intent to establish an infrastructure investment mechanism to finance public and private sector projects in the IDB borrowing member countries.
The two institutions also signed a Memorandum of Understanding that marks an important first step to set up an investment fund to forge sustainable economic partnerships between China, Latin America and the Caribbean by investing in key sectors of interest to both regions.
China Eximbank Executive Vice President Liu Liange and IDB President Luis Alberto Moreno signed both agreements today in a ceremony that took place during the IDB's Annual Meeting.
“These initiatives mark a new milestone in the cooperation between China Eximbank and the IDB to foster trade and investment activities between Latin America and the Caribbean and China,” Moreno said.
“Once established, the investment fund will support projects in areas of high importance for the region’s economic agenda. It will bring together Chinese and international investors with producers in Latin America and the Caribbean, further expanding the pool of financing available to support the regional economic development.”
Using a variety of instruments and currencies, including RMB, the fund would invest in infrastructure, energy and natural resources projects as well as in small and medium-sized enterprises active in the distribution chain of these industries.
Both agreements signed today build upon comprehensive existing cooperation between the two institutions most notably in the areas of trade and project finance.
Export-Import Bank of China (China Eximbank)
China Eximbank is a government policy bank enjoying the same international credit ratings as China's sovereign ratings. As an important force in promoting foreign trade and economy and a significant component of the financial system, China Eximbank has been acting as a key channel of policy financing for both Chinese import-and- export of mechanic and electronic products, complete sets of equipment, and high- and new-tech products and undertaking of offshore construction contracts and overseas investment projects by Chinese companies. The Bank is a major on-lending bank of foreign government loans and the only operating bank for Chinese Government Concessional Loans.
Inter-American Development Bank
The Inter-American Development Bank is the first and largest regional development bank and the main source of multilateral finance for the region. It offers its financial products and resources to help Latin America and the Caribbean countries reduce poverty and inequality in a sustainable way.