China launches US$1 billion fund in Macau to boost relations with Portuguese-speaking countries

28 March 2012

The Macau secretary for the Economy and Finance, Francis Tam, Tuesday announced the creation of the Fund for Cooperation and Development between China and the Portuguese-speaking Countries with initial capital of US$200 million, of which US$50 million will be the responsibility of the Macau government.

The US$1 billion fund was one of the measures announced by the Chinese Prime Minister, Wen Jiabao during the 3rd Ministerial Conference of the Forum for Economic and Trade Cooperation between China and the Portuguese-speaking Countries, held in Macau in 2010.

The fund is intended to provide loans, with subsidised interest rates, to the Asian and African countries that are members of the Forum, as well as to help them train managerial and technical staff.

Tam also said that the Fund would be registered in the Cayman Islands and that the government planned to capitalise the fund by the end of the year.

The fund will be managed by the China Development Bank Capital Corporation Ltd (CDBCCL), which will be partnered, as a Macau government representative, by the Macao Industrial Development and Commercialisation Fund (FDICM).

The secretary general of the CDB, Zang Xuguang said that Forum Macau would be the most important link between the Fund, the Portuguese-speaking countries and the partners.

Zhang said that as well as providing loans and direct investment the Fund would establish joint ventures with companies from Portuguese-speaking countries that want to enter China.

China’s deputy Trade minister, Jiang Zengwei noted, at the ceremony to present the Fund, that in 2011 trade relations between China and the Portuguese-speaking countries were worth a total of US$117 billion. (macauhub)