EEU Development Banks are set to play a vital role in the Silk Road Economic Belt project

Ivan Varenitsa emphasized the importance of the initiative proposed by Chinese President Xi Jinping to launch a large-scale Silk Road Economic Belt project. "Cooperation under the project envisages interconnection of transport infrastructure, uninterrupted and barrier-free trade, greater integration of markets, regional cooperation and free movement of capital between the countries of Central and South Asia and Europe. The Chinese President's proposal was supported by the EEU member states, including Belarus," he said.
During the official meeting with Xi Jinping in May 2015 Alexander Lukashenko named Belarus an important hub for the Silk Road project. Thanks to its favorable geographical position Belarus can become a gateway to both the Eurasian Economic Union and the European market for China. "The project is aimed at the development of a network of financial development centers and the optimization of financial flows. The countries involved in the project will have to harmonize their customs legislation to make the new transport and logistics system perfect," Ivan Varenitsa said.
In his words, the Development Banks of the EEU member states can make a considerable contribution to the implementation of the outlined goals. A joint action plan has already been prepared to develop cooperation within the Eurasian Economic Union. The document envisages among other things the participation of the Development Banks in drafting the EEU-China agreement on trade and economic cooperation and support of EEU investment projects in cooperation with the Silk Road Economic Belt project.
"Taking into account a special role of our bank in financing big investment projects implemented by Belarusian economic entities, the China Development Bank opened a $700 million worth of a credit line for the bank under the guarantees of the Belarusian government. One of the main conditions in financing projects with the help of the Chinese credit line is that the share of China's participation in the investment project should be at least 50% of the total cost of the project. The minimal cost of the project should be not less than $1 million," Ivan Varenitsa said.
Among the priority areas for financing were named transport, energy, industry, infrastructure, small and medium-sized business projects, and also projects implemented by residents of the China-Belarus Industrial Park Great Stone, Kazinform refers to eng.belta.by.