A bill is in procedure with the aim to be passed in the United States Senate before the midterm election in November to open the way for equity funding in the developed world, and Ray Washburne, head of the Overseas Private Investment Corporation, told the Financial Times it would mean an improvement to match development finance institutions of other countries.
The lending cap is set to be more than doubled to $60 billion and he claimed China has been increasing its influence by burdening emerging markets with debt through "loan-to-own" schemes, like in infrastructure. OPIC, which can only buy debt, is planned to be blended into the new International Development Finance Corporation.
The mobilization of private investment includes earning profit for the US budget, the article published on Sunday adds and notes senators have warned Secretary of the Treasury Steve Mnuchin about China's growing influence in Djibouti. The government in Beijing is also looking to revamp its global influence with the Belt and Road Initiative. OPIC has recently lined up projects in Ethiopia, Nigeria, Guatemala and El Salvador.
