The Brazil/China Cooperation Fund for the Expansion of Productive Capacity with a budget of US$20 billion, announced in Brasilia on 26 June, 2015, will start operating next week, according to a statement from the Brazilian federal government.
The agreement to establish the fund was reached during the meeting of the Sino-Brazilian High Level Committee for Coordination and Cooperation (Cosban), which established that China would be responsible for US$15 billion and Brazil the remaining US$5 billion.
The announcement said the fund will be managed by the International Affairs Office of the Brazilian Ministry of Planning, and a technical working group will be set up and a steering committee composed of staff from the Ministry of Finance, Planning, the General Secretariat of the Presidency and three representatives from China.
Jorge Arbache, Secretary for International Affairs of the Ministry of Planning, is quoted in the statement stating that of all the funds managed by the Investment Fund for Industrial Cooperation with Latin America, known as Claifund, “this is the only one with parity, which is to say decisions from both sides have the same weight.”
The financial resources earmarked for this fund are intended to be used to finance projects in different sectors, including advanced technology, digital services and industry.
The Brazilian contribution of US$5 billion may be increased, according to the federal government, using funds from the Investment Guarantee Fund (FI-FGTS), the National Bank for Economic and Social Development (BNDES) and private individuals.
The US$15 billion guaranteed by China will come from the China Development Bank (15%), with the remaining 85% raised in the market. (macauhub)