Interview: Brazil-China Fund

Sep 26, 2017

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

Mick Bowen

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.

"If a prospective borrower prefers...

To continue reading please take a free trial, subscribe or login below.


Already have an account?

Subscribe

Subscribe now for unlimited access to all current and archive news, data and market analysis. 

Subscribe

Free trial

Take a free two-week trial now for the latest news, data and market analysis.

Free Trial

Upcoming Events

Poll

Where will capital markets be busiest in 2017?

Vote    




Popular Searches