OREANDA-NEWS. June 7, 2012. Dejing Railroad (Debao-Jingxi) at the Sino-Vietnam border, connecting Vietnam, was recently completed. The Dejiang Railroad is expected to be open in July 2012, which will be of great significance for and play an important part in the economic and trade contact between China and Vietnam and even the Sino-ASEAN cooperation.

Nanning, capital of Guangxi province, has successfully held 8 China-ASEAN Expositions. ASEAN members have increasingly expanded their economic and trade exchanges, leading to more and more win-win cooperation and communication activities. In order to strengthen the communication with ASEAN members, Guangxi Zhuang Autonomous Region sped up the construction of the railroad connecting ASEAN in recent years to promote more prosperous development of international economy and trade. As of the end of March 2012, ABC Guangxi Branch has granted a total credit of RMB14.86 billion to five customers from railway industry including Nanning Railways Bureau and Guangxi Railway Investment Group Co., Ltd. with the loan balance as high as RMB2.883 billion.

It is understood that the Dejing Railroad will be mainly used for local rail freight. According to the Research on the Construction of International Transport Corridors for Guangxi Railroad, the government planned to establish three corridors in the eastern, central and western areas from Guangxi via Vietnam to Singapore. The Tiande Railroad and Dejing Railroad, after extending to Longbang Port of Jingxi County, will become a key part of western corridor and another international gallery between Guangxi and ASEAN.

In recent years, ABC Guangxi Branch constantly increased its credit support to approved boundary railway projects by leaning its credit resource to guarantee the projects under the construction and continued projects fully funded according to the schedule, and provided great support for customers and projects in the railway industry. Guangxi Branch will continue supporting high quality new railway projects in Guangxi, identify the support priority and effectively control and balance benefits and risks based on the concept of supporting projects under the construction, developing necessary projects and focusing on supporting facilities proposed by the Ministry of Railways in the 12th Five-Year Plan.

Guangxi Branch developed a strict investigation system for the credit extension to  the railway industry customers by rating customers and granting loans based on the credit regulations. During the due diligence, it took into full account financial and non-financial elements of customers and projects and put a focus on the cash flow calculation. Especially when conducting the investigation and evaluation on the loans to railway projects, Guangxi Branch decided the grace period and term of loans strictly according to the construction and completion periods. As a result, there was no mismatching of loan terms with completion periods of projects and the principal and interest of loans granted were repaid in time.