Risks on Belt & Road loans controllable: bank officials

Updated 2017-05-11 15:30:57 Xinhua

Chinese loans to countries and regions along the Belt and Road will not add to local debt burden, while risks rising from such loans are under control, bank officials said Thursday.[Special coverage]

Ding Xiangqun, vice president of China Development Bank (CDB), said at a press conference that the majority of projects supported by the CDB generated sufficient cash flow to pay back the principle and interest.

"It's quite biased to say that our loans add to local debt burden as we choose the projects very carefully, making sure they have economic value," said Ding.

She added that the bank also had strict credit requirements for sovereign loans, making sure the terms on these loans are in line with those required by the International Monetary Fund.

Sun Ping, vice president of the Export-Import Bank of China (China Exim Bank), said the bank has established risk-control mechanisms to evaluate the feasibility of loans based on the upper limit of debt that each country could bear, and widespread defaults on sovereign debts are unlikely.

"With strict measures to mitigate risks, I'm confident that the level of non-performing loans will remain under control," said Sun.

Since the launch of the Belt of Road Initiative in 2013, China Exim Bank has supported more than 1,200 projects related to the initiative, with contracted value surpassing 700 billion yuan (about 101.4 billion U.S. dollars).

By the end of 2016, CDB had given than 160 billion U.S. dollars of loans to countries along the Belt and Road to support development in industries such as infrastructure and energy resources, according to Ding.

Also in the News

Nicole Kidman Recalls Oscar Glory: Loneliest Time
Showbiz2016/06/16 13:58September 23 2017 01:11:57

Nicole Kidman Recalls Oscar Glory: Loneliest Time

Attending Shanghai International Film Festival, Nicole Kidman talks about her role in "Grace of Monaco".

Labor Day Travel Peak Starts
Also in the News2014/05/01 12:16September 23 2017 01:11:57

Labor Day Travel Peak Starts

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'
Also in the News2014/04/18 13:18September 23 2017 01:11:57

Johnny Depp Delivers a Speech 'Evolve the Future' in 'Transcendence'

Hollywood star Johnny Depp's speech in the upcoming new film "Transcendence" has been disclosed on Friday, April 11th.

Most Watched

News:
China World Business Sports Showbiz Audio
Video:
C4 My Chinese Life The Sound Stage China Revealed Showbiz Video Travel Video
Photos:
China World Fun Travel Entertainment Sports
Travel:
Beijing Shanghai Guangzhou
Lifestyle:
Live Music Opera & Classical Movies Traditional Shows Exhibitions
Learn Chinese:
Chinese Studio Living Chinese Everyday Chinese Just For Fun Chinese Culture Buzzwords