Representatives from Brazil's Ministry of Planning and the China Latin American Industrial Cooperation Investment Fund made the announcement on May 30, at the 2017 Brazil Investment Forum in Sao Paulo.
The fund has an initial sum of $20 billion to finance investment projects in Brazil that are of interest to both countries.
The new fund serves as a mechanism to promote investment by bringing the public and private sectors of both countries together on a variety of projects.
The innovative mechanism is the first of its type in Latin America, as Brazil becomes the first country in the region to participate in a fund that is jointly governed by China.
According to the agreement, for every dollar put up by Brazil's financing sources, China put up three, with the initial $20 billion comprised of $5 billion from Brazil and $15 billion from China. Both sides have said they are willing to provide more financing, if projects call for it.
[Founded Time]
May 30, 2017.
