(Yicai Global) Feb. 27 -- A lack of funding is the most pressing problem facing the countries along the Belt and Road, the chairman of the State Institution for Finance and Development said. China's next step will be to deepen multilateral financial cooperation.
"As a next step, we will deepen the pragmatic cooperation with China-ASEAN Inter-bank Consortium and Shanghai Cooperation Organization Interbank Consortium and carry out multilateral financial cooperation by means of syndicated loans, bank credit, etc.," said Li Yang, who is also a former member of the Monetary Policy Committee of the People's Bank of China, at a keynote speech at the Belt and Road Initiative: New Engine for Economic Globalization forum yesterday.
China will support governments, companies and financial institutions with high credit ratings in regions along the Belt and Road by issuing yuan-denominated bonds at home and bonds in foreign currencies abroad, he said. The raised funds will be used in countries along the Belt and Road. Making money available to those in need is an important part of the initiative that can help ease the Belt and Road's funding shortage, Li said.
"Deepening financial cooperation and promoting the construction of an Asian monetary stability system, investment and financing system and credit system are the heart of the strategy. Remarkable results have already been achieved in many aspects, including expanding the scope and scale of bilateral currency swap and settlement, promoting the opening and development of Asian bond market, advancing the construction of Asia Infrastructure Investment Bank, BRIC Development Bank, and SCO Financing Institution, and speeding up the operation of Silk Road Fund," said Li.
Li cited Ant Financial Services Group's investment in Indian payment and commerce company Paytm as an example of the potential of mobile internet companies in countries along the Belt and Road. Mobile payment platforms from Paytm and Alibaba Group Holding Ltd.'s [NYSE: BABA] Ant Financial boomed in the wake of the Narendra Modi Notes Ban, which reduced the circulation of large amounts of cash.