October 05, 2009
China SWF May Buy Developing World Bad Debt
According to World Bank president Robert Zoellick, Beijing's sovereign wealth fund, the China Investment Corporation (CIC), is interested in a new program of the International Finance Corp. of the World Bank to buy the troubled assets (mostly non-performing loans) of developing nations. The CIC is interested in the program as a way of vetting potential investments (CIC's track record remains somewhat poor to date) and removing the potential for the appearance of political influence. China itself has benefited from $4 billion (US dollars) in various IFC investments over the past 25 years. The IFC has said in the past that the extent of non-performing loans in emerging countries is a "crisis" and could be estimated in trillions of dollars....
Labels: foreign investment, foreign relations
# posted by Sinomania! : 10/05/2009 04:42:00 PM
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