As the largest development finance institution in China, CD

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• China Development Bank (simply as CDB) would like
  to extend its sincere gratitude to President Alan
  Garcia and the Peruvian Government for passing a
  supreme ordinance on May 16, announcing May 19th
  of 2008 as a national mourning day for the
  victims of Wenchuan earthquake in China. As the
  largest development finance institution in China,
  CDB is giving full play to its role in earthquake
  relief efforts and post-disaster reconstruction.
  The bank has been playing an important role in
  promoting Chinas economic development. I wish to
  take this opportunity to discuss with you how to
  reinforce the cooperation in development finance
  and boost the economic development of both China
  and Latin America.

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• Latin American and Caribbean Region (simply as
  LAC region) and China are geologically far from
  each other but enjoy a long history of
  friendship. In recent years, China-LAC economic
  and trade cooperation has entered a new stage of
  rapid and steady development, and a closer trade
  and investment tie has been built between China
  and LAC countries.
• Trade value between the two sides has increased
  substantially for many years, reaching US102.6
  billion in 2007, a year-on-year growth of 46,
  thanks to the huge demand brought by the steady
  and rapid growth of Chinas economy. Urbanization
  and industrialization have become a sustained
  driving force for Chinas economic and social
  development. In view of the huge market composed
  of 1.3 billion consumers in China, there is big
  room for the growth of China-LAC trade. CDB would
  like to share with LAC countries its experience
  in promoting Chinas economic and social
  development, and learn experience in related
  fields from each financial institution present at
  this meeting, in an effort to jointly contribute
  to our economic and social development.

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Like most LAC countries, China is also one of the
developing countries. Development finance is a
financial vehicle. It is designed to alleviate
the institutional backwardness and market
failure, improve financial system and enhance
economic strength. It combines the financing
advantages of development finance institutions
with the various resources, thus promoting market
building. So that the market would play an
essential role in allocating resources, and the
business partners could complement each other
with the advantages each possesses and achieve
mutual benefit and win-win scenario in their
cooperation.
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As a development finance institution under the
Chinese government, CDB regards reinforcing the
national strength and improving peoples
livelihood as its mission. In recent years, we
have been actively practicing the theory of
development finance, and have been an efficient
finance provider and market builder. Our efforts
have notably facilitated Chinas economic and
social development. We focus on supporting the
construction of key projects in infrastructure,
basic industries, pillar industries and high-tech
industry. In the meantime, we have made active
efforts to facilitate the development of some
social bottleneck sectors and those involving the
peoples livelihood, among them are the building
of new socialist countryside, small and
medium-sized enterprises (SMEs), energy saving
and environmental protection.
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These efforts have contributed to the building of
a harmonious society. Meanwhile, CDB has led the
industry for six successive years in terms of
major operating indicators. As of the end of
December 2007, the total assets of CDB exceeded
RMB2.8 trillion (approximately US404.5 billion),
the outstanding loans reached RMB2.03 trillion
(approximately USD289.6 billion), and the NPL
ratio 0.59.
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Referring to the practice of the bank, we have
identified some effective approaches. The first
is to establish channels to solve the problem of
financial bottleneck secondly, to integrate the
advantage of the government as coordinator and
the advantage of CDB as finance provider. This
integration can be quite beneficial for our
market building efforts. Thirdly, to use the
development finance to promote the development of
key sectors and alleviate the bottlenecks to
economy fourthly, to make sophisticated plan
before taking action and to adopt a rational
development path fifthly, to strike a balance
between macroeconomic task and profitability and
sixthly, to let the socialization of finance and
the financialization of our society promote each
other.
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In response to the trend of economic
globalization, CDB has been actively conducting
international cooperation and providing financing
services to overseas market. Firstly, we have
been actively delivering bilateral and
multilateral inter-bank cooperation CDB has
established financial cooperation ties with many
financial institutions in LAC region, such as
Banco de Desarrollo Economico y Social de
Venezuela (BANDES) in Venezuela, Development
Bank de Jamaica Limited in Jamaica, Banco
National in Costa Rica, Banco de Estado in
Ecuador, Banco de la Nacion and Banco de
Inversion y Comercio Exterior (BICE) in
Argentina, BNDES in Brazil, as well as some
multinational institutions such as Andean
Development Corporation (CAF) and Latin American
Export Bank (BLADEX). CDB and BANDES has jointly
established Sino-Venezuela Joint Fund, which
plays a significant role in stimulating the
bilateral cooperation in the realm of energy
resources and the social and economic development
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Secondly, we provide large-sized and qualified
Chinese enterprises with a variety of financial
services such as export credit, corporate
finance, project finance and syndicated loans, to
help them engage in the energy, minerals,
telecommunications, transportation and other
infrastructure sectors in the LAC ( region.
Thirdly, we cooperate with several development
finance institutions to support key
infrastructure projects in LAC countries. For
example, we provided a loan to BNDES to finance
CASANE Nature Gas Pipeline project and we also
co-finance Argos Cement project in Colombia with
CAF. These efforts help promote the economic and
social development of related cooperative
countries and boost the bilateral relationship.
By the end of April 2008,current outstanding loan
of CDB in LAC region amounted US 7.75 billion,
and our commitment has been US12.5 billion.
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We attach great importance to the mutual trust
and understanding with each LAC country and have
successively sent 16 small teams to LAC countries
to with a view to deepen bilateral financial and
economic cooperation. These teams have maintained
close contacts and communications with member
banks of ALIDE. ALIDE is a significant
association of development finance institutions
in LAC region, and an important force in boosting
the social and economic development of the
region. CDB wishes to establish an
omni-directional, multi-level and diversified
cooperation with members of ALIDE, to jointly
support the economic and social development of
each country concerned.
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CDB believes in an even brighter future of
financial and economic cooperation between China
and LAC countries. CDBs cooperation with each
member of ALIDE is based on the principle of
mutual benefit and common development. We give
top priority to the support to key projects cared
by the governments of the host countries, and
will work with the governmental agencies and
financial institutions of LAC countries to serve
as a bridge between China and LAC region, through
market-oriented and commercial operations. We
will promote the trade and investment between the
two, do our share for the economic and social
development of LAC countries, and fulfill our
commitment to the coming of a harmonious world!
Thank you.