The Brazilian and Chinese authorities have selected five projects – four infrastructure construction projects and one in the industrial sector – to receive joint financing of US$2.4 billion from the Brazil-China Cooperation Fund for Expansion of Production Capacity, announced the secretary of international affairs of the Brazilian Ministry of Planning, Development and Management.
Jorge Arbache said that the five projects selected from six that were examined during the second meeting of the Technical Working Group (TWG) are being analysed by financial institutions of the two countries to assess their economic viability.
Secretary Arbache also said that if the financing is approved, the credit that can be granted as a subsidised loan in the form of venture capital can be provided in reais, the Brazilian currency, thus avoiding exchange rate risk and making the loan more attractive.
The Brazil-China Cooperation Fund for Expansion of Production Capacity, announced in 2015, has an expected allocation of US$20 billion, with the Chinese Investment Cooperation Fund in Latin America (Claifund) being responsible for US$15 billion and Brazil for the remaining US$5 billion, which will preferably come from the National Bank for Economic and Social Development and the Federal Savings Bank. (macauhub)