CDB funds renovation projects in rundown areas

China Development Bank Corp has increased lending to renovate rundown towns in the country.

Primarily responsible for raising funds for large infrastructure developments, the bank recorded loans of 419.8 billion yuan ($68 billion) for renovation projects in the first half of this year. That exceeded the loan volume of 408.6 billion yuan for 2014.

China Development Bank increased its lending to improve conditions in coal mining areas and resource-exhausted cities, Liu Yong, the bank's chief economist and director-general of the business development department, said on Thursday.

During the first six months, loans to renovate rundown towns in central, western and northeastern China accounted for 65 percent of the total amount.

Last year, the State Council decided to let CDB form a housing finance department, in an effort to increase support to renovate rundown areas.

"We follow the principles including market operation, high efficiency, transparency and independent accounting, combining them with the characteristics of medium and long-term loans," Meng Yaping, vice-president of CDB Housing Finance, said.

"By forming a specialized team, we ensured the intensity, professionalism and refinement of lending to shantytown renovation projects," Meng added.

In addition, the bank continued to back railway construction, water projects and urbanization. As of June 30, its outstanding loans involving water projects reached 352.5 billion yuan.

The bank has also supported more than 400 projects in 64 countries along the Belt and Road Initiative by signing agreements worth more than $137.3 billion by the end of last year.

The Silk Road Economic Belt and the 21st Century Maritime Silk Road initiatives were proposed by President Xi Jinping in 2013 to improve the infrastructure along the ancient trading routes.