China planning to reform Exim Bank into a commercial bank -...

China planning to reform Exim Bank into a commercial bank - Xinhua - UPDATE
10.18.07, 6:32 AM ET


BEIJING (XFN-ASIA) - The Chinese government, led by the central bank, is still in the process of drafting a plan to allow the Import-Export Bank of China (Exim Bank), one of the country's three policy banks, to be restructured into a commercial institution, said the official Xinhua news agency, citing bank president Li Ruogu.

Li said on the sidelines of the 17th Communist Party Conference that a capital injection will also not be ready until the bank's restructuring plan is launched.

China has named the reform of the policy banks as one of its top priorities in this year's central financial working conference.

Exim Bank will transform from a government export credit institution to a bank promoting international economic operation, according to the conference. The need for a capital injection has arisen as the bank needs funds to boost its capital base.

Li said separately that the bank has no plan to sell foreign-currency bonds as China has enough foreign reserves, according to the Xinhua report.

Exim Bank has lent about 20 bln usd to the nation's importers to date, Li added.

The bank's non-performing loan ratio is around 2.5 pct, said Li, adding that its outstanding loans are expected to grow about 30 pct this year.

He said the bank also has no plan to sell stakes to foreign strategic investors in the 'mid- and short-term, or the coming five years