Posted On 08 Apr 2014
China has granted USD 102 billion in loans to Latin America between 2005 and 2013, especially in Venezuela and Argentina, while countries like Mexico increase its contacts with Beijing, according to a study released on Monday.
The previous year, down payments registered a fallen to USD 3 billion, the lowest since Chinese banks were interested in the region in 2005. According to the study, China also lent money to Ecuador and Jamaica, which was affected with serious fiscal deficit.
The Chinese Government seeks ways to balance the risks, charging interest rates higher than the capital market in Ecuador, or charging Venezuela and Ecuador with oil in Venezuela, explained Kevin Gallagher, co-Director of the Global Economic Governance Analysis Initiative of the University of Boston.
At the same time, China has shown increasing interest in countries such as Mexico, which `is opening´ its oil company legislation, and China `wants to be an actor’ in those changes, said Gallagher.