Above: IDB President Luis Alberto Moreno (IDB Photo)

By the Caribbean Journal staff

The Export-Import Bank of China and the Inter-American Development Bank are working to create an investment platform for Latin America and the Caribbean that could create as much as $1 billion for equity investments aimed at sustainable development.

The platform, which should be operational this year, comes after the signing of a letter of intent between the two parties last year.

The IDB will provide a $150 million loan to the China Latin America and the Caribbean investment platform, to be matched by Exim Bank.

“This new platform will promote stronger investment ties between China and Latin America and the Caribbean, helping our region overcome some of the most important development challenges,” said IDB President Luis Alberto Moreno. “This partnership is an example of how the IDB can play a pivotal role in increasing cooperation between our region and China to promote greater trade and investment.”

According to Liu Liange, vice president of China Eximbank, “the demands and aspirations in economic and technical cooperation between China and Latin America and the Caribbean are growing gradually.”

“IDB and China Eximbank have undertaken this initiative to develop an investment mechanism to meet the common interest of Latin America, the Caribbean and China,” he said.

The two parties are in the process of selecting firms to manage the investments and raise funds from the markets.