Latin focus by the US
The United States has developed a fresh organization with a specific focus on Latin America to support growth around the globe.
David Bohigian, Overseas Private Investment Corporation’s acting president and chief executive, said an agency known as the U.S. The International Finance Corporation for Development will begin working on 1 Oct.
DFC will have the authority to make limited equity investments with a cap of $60 billion in addition to loans, loan guarantees and political risk insurance.
In particular, the U.S. expects to double its Western Hemisphere funding to $12 billion.
A declaration on the website of OPIC said: “DFC will assist nations sidestep opaque and unsustainable debt traps that Beijing is laying across the developing world and assist more American businesses invest in emerging markets, including many locations that are of important strategic significance to the United States.”
According to a database collectively operated by the Inter-American Dialog and the Global China Initiative at the Global Development Policy Center of Boston University, Chinese state banks have funded growth initiatives in Latin America for $14 billion since President Donald Trump took office.
But Bohigian told journalists it’s a mistake to just look at government-to-government cash because the U.S. is the primary source of Latin America’s $237 billion earned as lately as 2017 in direct foreign investment.
“U.S. private industry investment far outstrips” the Chinese government’s resources, he said.