The Bank's primary lending activity is providing loans to key domestic
construction and technological renovation projects throughout the
country, focusing on the industries and areas considered to be of
primary importance by the Government. These loans are made in the
form of both RMB and foreign currency financing, depending on the
need of the borrower. Most new loans were focused on the energy and
transportation sectors in 1999.
RMB Operations
Domestic currency loan commitments totalled RMB 149.6 billion.
Domestic currency loans outstanding amounted to RMB 554.6 billion
at December 31, 1999, bolstered by new loan disbursements of RMB 156.8
billion. As economic reform efforts continue throughout the country,
Bank management has made a concerted effort in 1999 to play even a
larger role in bringing about significant change in the economic and
environmental standards of the country and its people. Most of these
loans are medium and long-term financing arrangements to targeted
economic sectors.
Foreign Currency Operations
Lending Business¡¤Foreign currency lending is generally arranged for
the acquisition, introduction and implementation of foreign technology
and management practices in key projects, such as the Three Gorges
Dam, the Lin Ao Nuclear Power Station, and the Shenyang Tao Xian Airport.
These loans are generally to meet medium to long-term capital financing
requirements, specifically for investment in capital equipment. In
1999, foreign currency loans outstanding totalled $3.3 billion, up
33% over 1998.
Recently, lending in environmental protection has become an important
part in the foreign currency portfolio. In 1999, the Bank began
to raise foreign funds for environmental protection projects in
certain industries and regions. These funds were targeted for the
acquisition of new technology, equipment and related engineering
services for projects addressing the identification of renewable
energy sources, the development of clean coal burning alternatives,
and the implementation of energy conservation initiatives.
Letters of Guarantee and Letters of Credit¡¤The Bank also conducts
letters of guarantee and letters of credit operations in foreign
currencies to support borrowings incurred by Chinese companies in
connection with purchases of plant and equipment from foreign sources.
At December 31, 1999, over $495 million of guarantees and letters
of credit were outstanding.
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