PBOC to Deepen Forex Cooperation With Central, Eastern Europe
Liao Shumin
/SOURCE : Yicai
PBOC to Deepen Forex Cooperation With Central, Eastern Europe

(Yicai Global) July 12 -- China's central bank will enhance cooperation with Central and Eastern European countries and explore yuan financing and issuance of green bonds, a debt instrument with proceeds that are used to fund environmentally beneficial activities.

China also welcomes the inclusion of the yuan in those countries' foreign exchange reserves, the People's Bank of China said in a statement released yesterday after the seventh annual meeting of China-CEEC leaders in Sofia, Bulgaria.

The 17-member group issued an outline plan for future cooperation covering investment and financing, the layout of financial institutions, regulations, and fintech. The document stressed the need to strengthen cooperation "on a voluntary basis," open up new investment and financing channels and launch new tools based on market demands, as well as explore cooperation in yuan financing and green bonds.

The meeting also determined that Lithuania would host a high-level fintech conference for the group next year. China's fintech sector has secured a leading position globally following stellar growth, the PBOC statement said, adding that working together with China will help countries in Central and Eastern Europe to better understand the sector.

Most of the countries in the region are developing economies with huge infrastructure investment shortfalls, long investment cycles and large capital demand. This calls for financial institutions to adopt a multi-pronged, innovative approach, as well as cater to diverse financing needs through various tools. These include equity financing, debt financing, syndicated loans, public-private partnerships, bank-company cooperation, export credit insurance, and equipment leasing.

Editor: William Clegg

Follow Yicai Global on
Keywords: China Yuan , Currency Reserves , Central And Eastern Europe , Pboc