The Brazil-China Cooperation Fund for the Expansion of Productive Capacity will be officially launched on Tuesday, 30 May, in São Paulo during the Brazil 2017 Investment Forum, the Ministry of Planning, Development and Management said in Brasilia.
The Brazil 2017 Investment Forum is a meeting organised by the Inter-American Development Bank, which is held in the largest city in Brazil for two days, on Tuesday and Wednesday.
The Secretary for International Affairs of the Ministry of Planning, Jorge Arbache, said the fund is different from the others that China has with other countries because it has a parity agreement, which means that the decisions of the two countries will carry the same weight.
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 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.
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. (macauhub)