At the ongoing Boao Forum for Asia (BFA) annual conference, China Development Bank (CBD) revealed that it has already successfully financed over 600 projects in China's Belt and Road Initiative. The bank's financed projects, which included the first proposals since the initiative was introduced in 2013, are reportedly worth more than US$190 billion.
According to the bank's president, Zhen Zhijie, who spoke at a panel discussion at the event, the bank has also loaned a substantial amount of money to international projects. Zhen revealed that as of December last year, the bank has already loaned more than US$105.9 billion, which accounts for 34 percent of the major policy bank's total outstanding loans for international clients.
To help in the overall success of the Belt and Road Initiative, the bank had previously set up a three-year special lending scheme for different infrastructure, financing, and industrial capacity projects. The scheme, which had been set up in May 2017, was reportedly worth more than US$37 billion. Zhen revealed that the scheme had worked and brought about a lot of new business to the firm. As of last month, loans issued using the scheme had reached over US$71 billion, with over US$20 billion used for infrastructure construction under China's ambitious development strategy.
Despite the massive amount of outstanding loans, Zhen revealed at the panel discussion that the loans have proven to be sustainable. He also hopes to continue to provide risk-controlled financial support for additional projects under the Belt and Road Initiative. The bank's president also spoke directly to the attendees of the event to promote the financing of more Belt and Road projects and that every firm, whether state-owned, private, or foreign, should be given support.
Zheng's statement is somewhat in line with China's new and more open policies with foreign and private players. Zheng even mentioned that they are very open to providing inclusive financial platforms to anyone who needs capital to aid the country in achieving its initiative. The Belt and Road Initiative is China's ambitious strategy to develop strategic infrastructure to drastically boost its economy. While some countries have expressed their support of the initiative, some countries such as the United States have criticized it as nothing more than a money pit and as an aggressive push by the country to expand its economic influence. The project will involve the construction of various ports, roads, and railways in various countries, including Europe, Asia, the Middle East, and Africa.
