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Development Banks

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Development banks play a crucial role in developing the green Belt and Road Initiative. They include both national development banks (such as the China Development Bank, the China Exim Bank), regional development banks (such as the European Bank for Reconstruction and Development/EBRD, European Investment Bank) and multilateral development banks (such as the Asian Infrastructure and Investment Bank/AIIB, the Asian Development Bank/ADB, the World Bank, the African Development Bank/AfDB). Development banks can provide different financing instruments, such as concessionary loans, mixed finance, commercial finance to invest in both bankable projects and to some extent in public goods projects.

During the 2nd Belt and Road Forum for International Cooperation in May 2017, Chinese President Xi Jinping announced that the China Development Bank (CDB) will provide special loans of 250 billion RMB to support BRI-related infrastructure, production capacity and financial cooperation. The special loans consist of three sub-loans, namely a special…