DR fixes Chinese financing
November 26, 2018 |
China Exim Bank foots a $600m loan to fund power transmission projects on the Caribbean island
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The Dominican Republic has secured a $600m loan from the China Exim Bank to finance power transmission projects on the island, the Caribbean Council said in a press release.
The two countries have also agreed to form a commission to increase cooperation in trade and investments, and the Dominican finance ministry has reached agreements with the China Exim Bank and the China Development Bank (CDB) to receive long-term loans for trade, foreign investments and infrastructure projects, the Caribbean Council said.
Chinese firms have invested in energy, telecommunications, mining and light industry in the Dominican Republic, while Dominican companies are finding a large consumer market in China for tobacco, rum, pineapple, banana, cocoa and blue amber in China, the council said.
The Dominican Republic imported $2.5bn in Chinese goods in 2017, but only exported $145m of goods to China, and a large part was scrap metal, according to the national statistics agency ONE.
China and the Dominican Republic established diplomatic relations in May, after the Dominican Republic decided to cut ties with Taiwan.