Banks see little risk involving initiative

Credit risks in markets linked to the Belt and Road Initiative are under control, and major Chinese banks are building firewalls to ensure sustainable financing for overseas infrastructure projects, senior banking executives said on Thursday.

They were responding to concerns that Chinese investment and loans would increase the debt burden of some developing countries and the risk of potential sovereign credit defaults would undermine the asset quality of Chinese banks.

Ding Xiangqun, vice-president of China Development Bank, a State-owned policy bank, said that Chinese loans will not increase the local debt burden and the risks associated with the loans are under control.