China will be investing in the Interamerican Development Bank's projects in Latin America and the Caribbean. This investment is worth US$2 billion and was announced by the bank last Saturday. The investment would be used to co-finance public sector loans worth US$500 million and private sector loans worth US$1.5 billion.
The purpose of the fund is to fight poverty and improve competitiveness through loans available in the next three to six years. Chinese investments have reached tens of billions of dollars in countries such as Mexico to Argentina in the past ten years. The investments were to acquire strategic assets or companies in known markets such as oil, food and minerals.
This March alone, the IADB also announced the investment by China's Import-Export Bank in a US$1 billion find also for both public and private sector investments in the region. This clearly is a sign of Chinese eagerness to form partnerships with known institutions in the South American continent.
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