CDB Making Strong Efforts to Ensure Orderly Granting of Belt and Road Construction Special Loans

On January 31, 2018, CDB convened the Plenary Working Conference on International Business in Beijing. As noted by Zheng Zhijie, President of CDB, in 2018 CDB should further implement the guidelines of the 19th CPC National Congress and the Central Economic Working Conference (CEWC) and adhere to serving China’s national strategies. With a general goal of seeking stable progress, CDB should emphasize on serving the construction of the Belt and Road, ensure a smooth issuance of special loans equivalent to RMB 250 billion, and enable high-quality development of CDB’s international business.

The conference was attended by Executive Vice Presidents of CDB Wang Yongsheng, Zhou Qingyu and Cai Dong and chaired by Zhang Xuguang, Executive Vice President of CDB.

According to Zheng Zhijie, in the past year, the comprehensive competitiveness of CDB’s international business was further enhanced due to remarkable performance in all aspects of serving national strategies and the construction of the Belt and Road, carrying out major projects, promoting multilateral and bilateral financial cooperation, enhancing risk prevention and control, improving the support capacity, and expanding subsidiaries’ international business. CDB successfully fulfilled a series of tasks in 2018: providing full support for the preparation of the Belt and Road Forum for International Cooperation, where CDB signed a range of cooperation agreements including the Loan Agreement on the Jakarta-Bandung High-speed Rail and contributed 25 specific outcomes under the five major categories to the forum’s outcome list; steadily pushing forward the issuance of the Belt and Road construction special loans equivalent to RMB 250 billion, with a cumulative loan commitment equivalent to RMB 99.1 billion made so far; and issuing the loans for several major projects including the Yamal LNG in Russia and the Hinkley Point C (HPC) nuclear power station in the UK. As of the end of 2017, CDB reported USD 332.7 billion in outstanding loans for international projects, maintaining its position as the largest bank specialized in foreign investment and financing cooperation in China. It also made significant progress towards high-quality development by reducing both the amount and ratio of non-performing loans.

As noted by Zheng Zhijie, China has demonstrated an unswerving commitment to implementing the basic national policy of opening up and to actively promoting international cooperation on the construction of the Belt and Road, which has created a broad range of opportunities for the development of CDB’s international business. Since the conclusion of the 18th CPC National Congress, CDB has made many new achievements in developing its international business, laying a solid foundation for better leveraging the advantages of development finance. The year 2018 marks a new start and a crucial year for CDB to implement the 13th Five-Year Plan and improve the development of its international business in all aspects. Efforts should be made across CDB to seize the opportunities and make deliberate planning to open a new chapter for the CDB international business. Firstly, CDB should push forward the orderly granting of the Belt and Road construction special loans equivalent to RMB 250 billion, and make further efforts to enhance the mechanisms for improving project reserves and facilitating the implementation of major Belt and Road construction projects. Secondly, CDB should focus on serving China’s economic interaction with other countries and regions, and provide full support for the preparation of multilateral diplomatic events held in China and high-level meetings attended by state leaders. Thirdly, CDB should put more emphasis on key accounts and major projects to provide strong support for the continuous development of its international business. Fourthly, CDB should develop innovative models and products of overseas investment and financing to create new drivers for the development of its international business. Fifthly, CDB should continue to promote the development of all the existing interbank associations, create a multilateral financial cooperation platform, and play a more active role in international financial governance, following the principle of joint discussion, common development, shared interests, and mutual benefits. Sixthly, CDB should further enhance risk management to safeguard the stable development and promising future of its international business. Seventhly, CDB should continue to improve the overall capacity to support its international business in all aspects.

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