US Saves Ecuador From China’s Debt Trap
WASHINGTON The United States struck a deal with Ecuador to refinance its China debt, as part of an effort to counter Beijing’s growing influence in Latin America.
The U.S. International Development Finance Corporation (DFC) signed a framework agreement with the government of Ecuador on Jan. 14 to refinance its preexisting debt to China and support the country’s development projects in the future.
DFC is a federal government agency formed in December 2019 to advance U.S. foreign policy interests and finance infrastructure projects in developing countries to compete with China.
“The agreement is for the delivery of up to $3.5 billion to prepay expensive debt and reactivate the productive sector,” President Lenín Moreno of Ecuador said during a virtual press conference after the signing of the agreement.
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Capital markets partners Gianluca Bacchiocchi and Guido Liniado join firm in New York Latham & Watkins has hired a partner duo from Clifford Chance in New York to bolster its Latin America and capital markets practice. Gianluca Bacchiocchi and Guido Liniado will join the firm’s corporate department and energy and infrastructure industry group, and will primarily advise clients on energy and infrastructure deals across Latin America. Marc Jaffe, global chair of Latham’s corporate department, said: “[Bacchiocchi and Liniado] have rightfully earned reputations as market-leaders, with both the track records and well-established relationships throughout Latin America to make them an incredible asset to our clients. They are wonderful additions as we continue to invest in and extend the firm’s reach in the region.”
Nearly two dozen career civil servants have been named by the Biden administration to temporarily lead the nation s federal agencies in the next phase of the transition of government.
Alexander O. Onukwue
20th January 2021
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but may need one holdover to influence Africa.
In January 2020, Nigerian healthcare startup LifeBank became the first company to receive investment under a new maternal care initiative introduced by the US International Development Finance Corporation (DFC).
LifeBank’s 24/7 blood supply business met three criteria for a DFC-funded company; it is a
revenue-generating enterprise filling a
emerging market.
Using these investment criteria, the DFC has gone on to invest in multiple sectors across Africa.
In addition to LifeBank, DFC’s Africa portfolio includes Twiga Foods, Copia (both Kenyan startups), and investments in Angola, Botswana, Chad, Egypt, Gabon, Morocco, Mozambique, Namibia, Senegal, South Africa, and Uganda.