China proposes a US$20 billion fund for Latinos.
According to President Dilma Rousseff, who participated in the meeting between representatives of Latin America and the Caribbean and Chinese President Xi Jinping, the fund should have an initial capital of US$10 billion; "They proposed doing this immediately to be ready next year," she said; the Chinese also offered a special line of credit that "could reach up to US$10 billion."
BRASILIA (Reuters) President Dilma Rousseff stated this Thursday that China has proposed a fund for countries in Latin America and the Caribbean to finance infrastructure projects, following a meeting between several countries in the region and Chinese President Xi Jinping in Brasília.
According to Dilma, who spent the last few days meeting with various heads of state for the BRICS summit – a group formed by Brazil, China, India, Russia and South Africa – and participated in the meeting between representatives of Latin America and the Caribbean and Xi, the fund should have an initial capital of 10 billion dollars.
"They proposed doing this immediately so it would be ready next year," the president told reporters at Itamaraty Palace.
According to Dilma, the Chinese also offered a special line of credit to CELAC countries—the Community of Latin American and Caribbean States—which “could reach up to 10 billion dollars.”
In addition to the fund and the line of credit, the establishment of the Latin America, Caribbean and China Forum was agreed upon at Thursday's meeting. The meeting also served for the countries to agree on the creation of a Sino-Latin American-Caribbean cooperation fund, worth 5 billion dollars. According to Dilma, the areas to which this fund will be allocated are yet to be defined.
The Chinese president's presence in Brasilia for talks with Latin American countries had enormous political symbolism. China is interested in investments in the region, especially in infrastructure, and took its first steps toward rapprochement with these countries this Thursday.
Brazil and China signed several cooperation agreements and agreements in the energy, financial, and industrial sectors, including the expansion of credit lines by $7,5 billion for Vale (VALE5.SA: Quotes) and the purchase of 60 passenger aircraft from Embraer (EMBR3.SA: Quotes). [ID:nL2N0PS1ZC]
(By Maria Carolina Marcello)