Japan to expand loans to Latin America

The Japanese government has decided to expand its loans to Latin America by boosting co-financing with the Inter-American Development Bank

The Japanese government has decided to expand its loans to Latin America by boosting co-financing with the Inter-American Development Bank, an international finance source said Saturday.

Japan, which became a member of the IDB in 1976, is mulling raising its co-financing from the current $1 billion to several billion dollars mainly to help accelerate the building of infrastructure in Latin America, the source said.

Tokyo expects the enhanced support through the IDB to create more business opportunities for Japanese corporations in Latin America, which has a population of some 600 million and an economic output of $6 trillion.

The financing will be provided in the form of yen loans through the Japan International Cooperation Agency.

The government will announce its new co-financing plan at the IDB’s annual board of governors meeting in the Bahamas early April, the source said.

Latin America’s need for infrastructure investment is $320 billion a year, according to a U.N. estimate. Countries such as China have been aggressively investing in the region.

Japan Today |

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