Guyana, Haiti to benefit from China/IDB loan scheme

IDB’s President Alberto Luis Moreno said the money will be divided into four loan schemes within the IDB, one of which will see US$125 million allocated for soft loans to Bolivia, Guyana, Haiti, Honduras and Nicaragua. (Photo: Chasquionline.com)

WASHINGTON D.C., United States, October 24, 2008 – Guyana and Haiti are among Latin American and Caribbean nations that will benefit from a US$350 million commitment made by China as that Asian country was inducted as a member of the Inter-American Development Bank (IDB) this week.

IDB’s President Alberto Luis Moreno said the money will be divided into four loan schemes within the IDB, one of which will see US$125 million allocated for soft loans to Bolivia, Guyana, Haiti, Honduras and Nicaragua. The remainder will go to multiple IDB grant funds to strengthen the institutional capacity of member states, the Inter-American Investment Corporation which lends to small and mid-size business, and the IDB’s multilateral investment fund.

“China is now this region’s second biggest trading partner after the United States; in 1995 it was the 12th biggest. China will contribute US$350 million to the IDB group with the aim to bolster some of our programmes in the public and private sectors at a time when the world economy is under duress,” explained Mr Moreno.
 
Chinese Ambassador to the US, Zhou Wenzhong, said the assistance would create the opportunity for increased two-way trade and investment and greater technological cooperation between China and the region.
 
“China will, after officially joining IDB, cooperate closely with Bank, support the IDB in reducing poverty and promoting development, and share our experience with the countries of Latin America and the Caribbean for the purpose of mutual benefit and common development,” the ambassador said.
 
The Asian giant will become the 48th member country of the Washington -based IDB, the single largest source of long-term lending for the region.
 
“We are thrilled to bring a large and growing economy like China into a community of nations that are working together to resolve the complex development challenges facing Latin America and the Caribbean. It is a historic decision that takes China’s thriving commercial relationship with our region into the development sphere,” said the IDB President.
 
“China is an increasingly important commercial partner and investor for the region and a vast new market for our exports,” Mr Moreno added.
 
China’s entrance was approved by other member countries in a month-long voting process that ended on October 15. The 26 Latin American and Caribbean borrowing nations own 50 per cent of the IDB while the US holds just over 30 per cent of the shares.