CAF deepens relations between China and Latin America

(Beijing, February 1, 2010). During the visit to Asia by CAF President & CEO Enrique García, agreements were signed with Export Import Bank of China (China Exim) and China Development Bank (CDB), as one of the actions by this Latin American institution to deepen trade and investment relations between Latin America and China.

García said, “There is no doubt about the role China is playing in the current international economic and financial situation and its contributions to mitigating the effects of the global crisis.” He emphasized the importance of the complementarity of the Asian and Latin American economies and the positive impact of China’s rapid growth on the investments and exports of the region.

The objective of the Memorandum of Understanding signed with the Export Import Bank of China, represented by its vice president, Liu Liange, was joint progress of activities in favor of the economic, financial and social development of CAF partner countries.

China Eximbank was set up in 1994 as an entity which operates under the Chinese government and the direction of the Council of State. Its mission is to implement State policies in support of industry, foreign trade, the economy and finance. Its functions include promotion of export and import of Chinese products, and support for Chinese companies, offering them comparative advantages to execute construction contracts on high seas and investment projects abroad. The bank also plays an important role in strengthening China’s relations with foreign countries aimed at improving the international economy and trade cooperation.

New funds from China for Latin America

A second cooperation agreement was signed by Enrique García of CAF and Chen Yuan, president of CDB in its Beijing headquarters, covering economic, financial and social development actions in CAF partner countries.

The two institutions confirmed their excellent level of relations and successful joint work, which has improved their mutual knowledge. The agreement signed will define new lines of credit; move forward with agreement on cofinancing operations for small-, medium and large enterprises; set up a trust fund; and promote exchange of staff.

CDB is a financial entity of the Chinese state, founded in 1994. Its function is to support the development of the national economy by actively participating in the long-term financing of key infrastructure projects in Chinese industry, pillars of the country’s economic growth.