Interview: Belt and Road Initiative provides opportunity for building new int’l credit rating system: Dominique de Villepin

Dominique de Villepin, former French Prime Minister and president of UCRG's International Advisory Council, delivers speech at the opening of the Universal Credit Rating Forum in Beijing, June 29, 2015. (Xinhuanet photo)

BEIJING, July 1 (Xinhuanet) -- The 2008 global credit crisis highlights the importance of building a new international credit rating system, and China's Belt and Road Initiative provides an opportunity for introducing such a system to the entire Eurasian region, former French Prime Minister Dominique de Villepin has said.

The former prime minister, also president of the International Advisory Council for the Universal Credit Rating Group (UCRG), made the remarks in an exclusive interview with Xinhuanet on the sidelines of the first World Credit Rating Forum on June 29.

Due to its slow response and short of foresight, the existing international credit rating system was accountable for exacerbating the international financial crisis that broke out in 2008, de Villepin said.

Since investment orientation and risk assessment are considered as an integral part of sound economic performance, it is necessary to let the world, including some heads of state and representatives of international economic organizations, recognize the significance of building a new international credit rating system and a new credit agency, the former prime minister said.

The Silk Road Economic Belt concept, first introduced by Chinese President Xi Jinpingduring his visit to Kazakhstan in 2013, provides an opportunity for the establishment of such a new international credit rating system in the entire Eurasian region, de Villepin said.

He also called for building an alliance of local rating agencies along the routes, letting existing local agencies fully play their role and at the same time helping countries without rating agencies establish new ones.

Countries along the Belt such as Kazakhstan, Turkmenistan, Afghanistan, and Pakistanneed to foster some credit rating agencies that are capable of risk assessment and can cooperate with the UCRG, he said.

He also noted that these countries have huge demand for infrastructure construction, which is in line with the needs of European and Asian investors. And he urged equal treatment of large enterprises and small and medium-sized enterprises (SMEs) in this endeavor.

But the SMEs are always in short of funds and are shunned away by the current credit rating agencies which is unfavorable for them to get loans. He expected to see these local agencies help the SMEs get loans by granting them credit ratings that they deserve.

He also touched on the the role of a new credit rating system in vitalizing regional economy. “There are a lot of Muslim countries along the Belt and Road,” he said, “we hope to revitalize the economy there that is overlooked by western credit rating agencies.”

He expected to have more funds channeled into the fields of production and infrastructure construction for the well-being of local people and regional stability.