China Exim is banking on reform
(China Daily)Updated: 2007-01-29 10:11
Q: Almost immediately after you took over the reins of the Eximbank in June 2005, you drew up an internal reform plan. How do you evaluate the progress you've made so far?
A: The changes we have made are encouraging.
First, we have got a new head office like other modern banks. The reorganization highlighted risk management and internal control, which in turn have borne better marketing and service results.
Second, our staff are more aware of the importance of service and returns.
Third, we managed to cut operation losses by a great margin last year.
And fourth, we have increased our support for Chinese companies in their global expansion bids, which is a new area of focus.
In the process, Chinese firms have helped the local economy of the places they are based in.
But we still have a lot more to do. We will expedite our reform to increase our global reach, grow from a bank of mainly export financing into one that finances exports and imports both and help overseas investment and the development of our firms.
Q: The central government is encouraging more imports to balance the enormous trade surplus. What role will China Eximbank play to achieve this?
A: The central government began urging institutions to increase imports at the end of last year. But our bank had already started an import-credit pilot program by then at the beginning of last year, to be precise.
In January 2006, we signed our first import-credit framework agreement for $1.5 billion to finance Shenzhen Airlines' purchase of aircraft and flight equipment.
There have been many applicants for import credits. In just one year, we arranged for 18 billion yuan ($2.31 billion).
Our import-credit business is designed to help Chinese firms buy key technologies, equipment and resources.
In due course, it will help improve the country's foreign trade balance and
improve the overall level of our industrial technologies.
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