BRIDGETOWN,
Barbados, Thursday March 21, 2013 – The China Co-financing Fund for Latin
America and the Caribbean is the first of its kind established by China and a
multilateral development bank.
The
fund is the result of a partnership between the Inter-American Development Bank
(IDB) and the People’s Bank of China (PBC) to support public and private sector
projects that promote sustainable economic growth in the region.
The
IDB said the fund will provide capital to complement the IDB’s own resources
for projects seeking to alleviate poverty and reduce inequality, boost private
sector investment, improve competitiveness and social welfare, and support
programs to mitigate the impacts of climate change and promote greater gender
equality.
The
proposed US$2 billion contribution by China will be used to co-finance a total
of up to US$500 million of IDB public sector loans and up to US$1.5 billion for
loans made by the Bank to private sector entities, the IDB said.
It
said co-financing fund resources will be used to complement IDB loans, subject
to pre-established limits.
The
IDB said the funds from China will be available for the next three years for
public sector projects and the next six years for non-sovereign guaranteed
operations.
“China
is a key partner for the Bank’s mission to alleviate poverty and inequality in
the region,” said IDB President Luis Alberto Moreno.
“This
partnership is another example of our efforts to promote greater South-South
cooperation to narrow funding gaps in sectors with high developmental impact
and enhance the social and economic impact of our projects,” he added.
In
partnering with the IDB, China hopes to channel its resources toward
development finance projects that require additional financing to make them
viable, the statement said.
SOURCE:http://www.caribbean360.com
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