China, IMF to work together on financing Belt and Road Initiative


(Photo: CGTN)

Global financial leaders vow deeper cooperation on the Belt and Road Initiative Thursday in Beijing, where China's central bank governor Yi Gang and International Monetary Fund chief Christine Lagarde unveiled a capacity development center to better support the Initiative.

Yi reiterated China's pledge to open up the financial sectors, scrapping the ownership limit for such foreign-funded firms as banks, securities brokers, wealth management firms and so on. The governor added that the initiative welcomes private capital to take part, and it needs help from global financial agencies and their networks for policy assistance.

"We should continue to promote a network of financial institutions and coverage of financial services,” said Yi.

China generated a huge demand for financial services in trade and investment cooperation along the Belt and Road region, Yi said, adding that not only traditional lending but also supporting services such as capital and funding settlement and clearing, cash account management and exchange risk management.

“For all of the services, we need commercial banks and other financial institutions to have a network in the Belt and Road region," Yi added.

While the initiative needs both public and private sectors to chip in, Lagarde added that parties should have fiscal discipline and transparent decision-making process to ensure successful and sustainable progress of the initiative.

Christine Lagarde, managing director of the International Monetary Fund (IMF) .(Photo: VCG )

Both Yi and Lagarde approved the early achievements of the Belt and Road Initiative in infrastructure building and financial services.

"For a look at the most recent development, the Thailand-China high-speed railway is one example of infrastructure's transformative impact. When completed, the new line will be the first of its kind in Thailand, and could enhance economic integration into the regional supply chain,” said Lagarde adding “another example is in Kazakhstan, where a recently-constructed manufacturing development zone is already stimulating trade and linking previously isolated areas."