by Günther Hamm
China has moved into LatAm in a big way, with over $15 billion
invested there in the past years. But that amount would be much
greater if Chinese companies investing in the region could gain
better access to low-cost government financing.
Can LatAm boost Chinese Investments?
Chinese companies want to invest in Latin America, but access to cheap financing can be an uphill struggle.
Chinese companies are interested in purchasing equity
stakes, taking on build-operate-and-transfer (BOT) projects and
building long-term investments but they need funding to carry
these ambitions forward.
Chinese buyers involved in other regions outside of LatAm
typically have access to cheap financing, provided by
governmental banks like the Export Import Bank of China
(Eximbank) and China Development Bank (CDB). But that form of
loan generally requires a sovereign guarantee, which many LatAm
countries are reluctant, or even forbidden, to provide.
China Eximbank and CDB are the most important lending
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