Call for greater focus on OBOR projects
Demand for infrastructure investment reveals a gap of US$300 billion in financing needs in Asia-Pacific countries
Zhou Xiaochuan, deputy director of Boao Forum for Asia and former director of Chinese central bank said the supports given to “One Belt One Road” projects should focus on the needs of investment and financing, unified currency settlement and financial services, The Paper reported.
According to estimates from the Asian Development Bank, from 2016 to 2020, the demand for infrastructure investment in Asia-Pacific countries aside from China will be approximately US$500 billion a year.
However, the total amount of funds that can be provided by public and private sectors is about US$200 billion per year, revealing a gap of US$300 billion of investment and financing needs which accounts for 5% of the GDP of the region.
Meanwhile, OBOR projects have involved cross-border cooperation between multiple countries, currencies and businesses. Thus, a unified currency settlement system can effectively avoid exchange rate risk and ensure the stability and security of investment in the region.
Since the OBOR initiative was put forward, Chinese banks have participated in more than 2,600 projects and have issued more than US$200 billion in loans, Zhou added.