The United States has developed a new finance agency to increase development around the globe. The agency will particularly focus on Latin America. David Bohigian, acting president and chief executive officer of the Overseas Private Investment Corporation, said that the agency is named as the US International Development Finance Corporation (DFC) and it will start working for the world and Latin America from Oct. 1st.
DFC will have authority to provide loans, loan guarantees, and political risk insurance. In addition, DFC will also be authorized to make limited equity investment with a $60 billion cap. The US is expecting to double its financing in the Western Hemisphere to $12 billion with the help of the DFC.
A Statement on OPIC’s website said, “DFC will help countries sidestep opaque and unsustainable debt traps being laid by Beijing throughout the developing world and help more American businesses invest in emerging markets, including many places that are of key strategic importance to the United States.”
According to a database jointly developed by the Inter-American Dialogue and the Global China Initiative at Boston University’s Global Development Policy Center, ever since President Donald Trump has taken office, Chinese state banks have invested to finance development projects in Latin America. The total finance by China till now is $14 billion. Many entrepreneurs have started new businesses in the US during the time period after learning the market needs from paskolas.lt.
Bohigian told reporters that it will be a mistake to focus only at the government-to-government money because in 2017 Latin America had received $237 billion from the US as direct foreign investment. For private sector investment from the United States, the funds are provided by the Chinese government.