Insurance debt investment program in Ningbo
- Details
- Category: Governmental News
- Published: Monday, 02 April 2012 12:59
On March 26, an agreement on the insurance debt investment program was signed, the first such program in Zhejiang. According to the program, insurance funds of 2.5 billion yuan will be invested in batches in the infrastructural facilities of Ningbo.
The time limit for the "Insurance Debt Investment Program of the People's Insurance Company of China and Ningbo" is 7 years. People's Insurance Company of China is trusted to collect funds from qualified insurance institutions and the funds collected are mainly be invested in the traffic infrastructural facilities. This program is the first one Ningbo has started to collect insurance funds for infrastructural facilities, which well balances the interests of the debtors and investors and effectively reduce the financing cost.
Reportedly, insurance debt investment is one of the major ways for insurance funds to be invested in infrastructural construction. This kind of investment has such advantages as large scale, long time limit, flexibility of fund uses and rational cost.
According to an authority of Ningbo Municipal Banking Office, the insurance debt investment program is an innovation Ningbo makes in financing. In the present situation of credit squeeze and high financing cost, it is of great significance for the city to broaden the financing channels for key projects.
In the time to come, Ningbo will further enlarge the cooperation with insurance institutions in investment with insurance funds. On the prerequisite of qualified financing projects, debtors and guarantee conditions, the city will take active measures to collect insurance funds for such fields as infrastructural facilities, public services, housing security and environment protection.
Su Limian, Vice Mayor of Ningbo, was present at the signing ceremony.
