Brazil is main destination of China’s loans to Latin America in 2015

12 February 2016

Brazil was the main Latin American destination in 2015 of loans provided by China’s development banks, pushing Venezuela into second place, non profit organisation Inter-American Dialog said in Washington.

Financing to Petrobras, granted by the China Development Bank, put Brazil at the top of the list, with a total of US$10.7 billion.

Petrobras is the Brazilian company that received most credit from China, about US$8.2 billion, aeronautical company Embraer received US$1.3 billion to finance the export of aircraft and a loan was also granted to finance a soybean and corn processing factory in Mato Grosso do Sul.

Loans from two Chinese development banks (Export Import bank of China and the China Development Bank) to governments and companies in Latin America almost tripled in 2015, to US$29 billion, according to Washington-based Inter-American Dialog.

The increase in loans from China occurred in a context of reduced credit granted by multilateral banks, such as the World Bank whose financing in 2015 fell 5 percent to US$8 billion and the IDB which fell 14 percent to US$11.5 billion. (macauhub/BR/CN)