China Development Bank To Provide Financial Support To Belt & Road Projects Affected By Covid-19
On February 28, The Ministry of Commerce and China’s Development Bank jointly issued the “Circular about Using Development Finances to Support the “Belt and Road Initiative.”
According to the circular, the China Development Bank will offer financial support by various means to support high-quality Belt and Road projects and enterprises affected by the epidemic in the following ways:
- Providing low-cost loans and foreign exchange working capital loans. For example, reducing financing costs within 30 basis points. Overseas RMB loans will be given interest rate cuts;
- Providing local and foreign currency loans.(e.g. provide US$5 billion in foreign currency special working capital loan support for enterprises to resume work and production);
- Extending loan repayment periods;
- Accelerating the opening up of ‘green channels’ for foreign exchange and overseas RMB business affected by the epidemic; and,
- Providing diversified financial support (e.g. increasing coordination with overseas financial institutions and promoting flexible and diversified domestic and foreign currency financing services).
The measures have been introduced to protect the integrity of infrastructure projects already underway and projects of immediate high strategic value and impact.
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