Interview: Brazil-China Fund
A new bilateral fund managed by Brazil and China has billions of dollars to invest. But, as the foreign affairs secretary at Brazil’s Planning Ministry says, the exact strategy is still being defined
When Brazil and China earmarked $20 billion for investments
in June this year, it was the first time that either government
had participated in a bilateral fund with another country.
President Michel Temer had discussed forming an investment fund
with China when he was vice president, before he took over from
former President Dilma Rousseff. The plans faltered for a
while, but both sides picked up the negotiations in the middle
of last year and signed the official documents to create the
fund just a few months ago.
China’s investment fund for Latin America,
known as the CLAI Fund, will put in $15 billion, while the
Brazilian government will provide the remaining $5 billion.
Brazil’s national development bank BNDES and the
federal savings bank Caixa Econômica Federal will manage
the fund, but other Brazilian banks will also be allowed to
handle the money.
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