IMF Managing Director: China's Belt and Road Project Needs a Reasonable Policy
In Beijing, the opening ceremony of the IMF-China Capacity Development Center was held, which was announced a year ago by Chinese President Xi Jinping. The Chinese government declares that China is ready to strengthen financial and investment cooperation with all sides of the Belt and Road initiative for the sake of universal development and promotion of profitable projects.
Speaking at the IMF and the People's Bank of China conference on the Belt and Road Project in Beijing, the International Monetary Fund Managing Director Christine Lagarde said that the initiative proposed by China needs a reasonable financial policy and consideration of the real infrastructure of the needs of the participating countries when selecting projects.
She stressed the importance of another challenge for the initiative is a sound economic policy. According to her, the initiative can provide financing for projects most needed for partner countries, but this in turn can also lead to the problematic growth of the debts of certain countries and the potential reduction in other spending due to the increase in debt obligations. IMF Lagarde also added, that for countries where the national debt is already quite high, careful regulation of financing conditions is critical, this will protect both China and its partners from concluding agreements that could lead to economic difficulties in the future.