REPORT: Joint People’s Bank of China-International Monetary Fund High-Level Conference on the Belt and Road Initiative (BRI) April 12, 2018 Beijing, China The Silk Road Economic Belt and 21st Century Maritime Silk Road, often referred to as the “Belt and Road Initiative” was launched by President Xi Jinping in 2013. The Belt and Road Initiative (BRI) aims to promote policy dialogues, foster connectivity and cooperation in infrastructure, trade, finance, and ‘people-topeople exchanges’. It aims to connect Asia with Europe and Africa, through the Middle East and reaching Latin American countries. It is expected to raise significant resources from China and various other sources, including the private sector, to support development, mainly infrastructure development, and improve growth prospects. The BRI has the potential to bring much-needed infrastructure to countries and facilitate trade and financial flows, thus acting as a source of growth and fostering international cooperation. Achieving these goals will require strong policy frameworks to ensure high-quality projects and sufficient macroeconomic and institutional capacity in partner countries to absorb investment flows, reap the benefits and manage the associated risks. China has been working with its partners, including participating countries and international organizations, to make sure the BRI reaches its full potential and the benefits are shared as widely as possible. In particular, close cooperation with the IMF will help in promoting strong policy frameworks as an important pillar for the success of the BRI.

The conference is sponsored by the China-IMF Capacity Development Center (CICDC), Tsinghua University PBC School of Finance and the International Financial Corporation. The CICDC is a new IMF center funded by the Chinese government to provide training and other capacity development events for China and other IMF member countries, including those participating in the BRI. 2 Macroeconomic and Financial Frameworks for Successful Implementation of the Belt and Road Initiative Ritz Carlton, Financial Street Grand Ballroom (2nd Floor) APRIL 11, 2018 6:30 PM WELCOME DINNER HOSTED BY THE PBC AND THE IMF VENUE: Temple of Heaven (2nd Floor) Welcome Remarks • ZHU Jun, Director-General, International Department, People’s Bank of China • Changyong RHEE, Director, Asia and Pacific Department, IMF • Sharmini COOREY, Director, Institute for Capacity Development, IMF • XING Yujing, President, Shenzhen Sub-branch, People’s Bank of China • ZHANG Yuanjun, President, Dalian Sub-branch, People’s Bank of China APRIL 12, 2018 8:15 AM REGISTRATION 8:45 AM WELCOME AND OPENING REMARKS YI Gang, Governor, PBC Christine Lagarde, Managing Director, IMF 9:15 AM Inauguration of China-IMF Capacity Development Center (CICDC) 9:20–9:30 AM COFFEE BREAK 9:30–10:45 AM SESSION I. What Can the BRI Do to Help Participating Countries? The BRI has the potential to boost growth and foster global integration through higher investment in infrastructure, greater trade integration (including integration into global value chains), and enhanced financial connectivity. As the Initiative moves forward, three key questions arise: (i) what are the main objectives and desirable outcomes, (ii) what are the possible risks or impediments, and (iii) what can policymakers do to enhance the benefits while minimizing potential risks, including by strengthening domestic institutions. This session will take stock of the experience so far and set the stage for the discussions that follow on specific policy frameworks. Moderator Markus RODLAUER, Deputy Director, Asia and Pacific Department, IMF High-Level Panelists • FAN Hengshan, Deputy Secretary-General, National Development and Reform Commission, China • Dimitry KUMSISHVILI, First Vice Prime Minister, Georgia • Ahsan Iqbal CHAUDHARY, Minister of Planning/Interior, Pakistan • Dusan VUJOVIC, Minister of Finance, Serbia • WANG Yongsheng, Executive Vice President, China Development Bank 3 10:45–11:00 AM COFFEE BREAK 11:00 AM –12:15 PM SESSION II. Macro-Financial Policy Implications of the BRI The BRI can enhance financial connectivity and help bridge the gap between infrastructure needs in emerging markets/low income countries and China’s surplus savings and investment capacity. In low-income countries, greater connectivity can foster financial development and inclusion, including by using fintech. However, there is a need to be conscious of debt sustainability risks, given the size of participating government BRI commitments, when scaled against current GDP, fiscal space, and foreign currency reserves. Rapid increases in financial flows could pose challenges to the typical pace and sequencing of financial deepening. Key questions include: (i) what types of financing arrangements would best mitigate macro-financial risks; (ii) what can authorities do to monitor effectively the buildup of risks to financial stability; and (iii) which micro- and macroprudential tools can effectively ameliorate the destabilizing impact of large-scale financial flows in shallow financial systems. Moderator MA Jun, Director, Center for Finance and Development, Tsinghua National Institute of Financial Research High-Level Panelists • PAN Gongsheng, Deputy Governor, PBC • Daniyar AKISHEV, Governor, National Bank of Kazakhstan • Mario BERGARA, President, Central Bank of Uruguay • Alamine OUSMANE MEY, Minister of the Economy, Planning and Regional Development, Cameroon • ERDEMBILEG Ochirkhuu, First Deputy Governor, Central Bank of Mongolia • LIU Liange, President, The Export-Import Bank of China 12:30-2:00 PM LUNCHEON VENUE: Temple of Heaven (2nd Floor) Keynote Speech ZHU Min, President of National Institute of Financial Research, Tsinghua University and Former Deputy Managing Director, IMF 2:15-3:30 PM SESSION III. Strengthening Fiscal Frameworks for a Successful BRI This session will focus on the importance of fiscal institutions and frameworks in achieving macroeconomic stability and supporting long-term inclusive growth, and the role that capacity building can play to strengthen institutions. A sound fiscal framework provides the basis for governmental policies that are sustainable and transparent, leading to effective policy decision-making. Topics to be explored include: medium-term fiscal frameworks, fiscal rules, identification and mitigation of fiscal risks, debt sustainability, medium-term revenue strategies (including customs and taxation of MNCs) and the scope of government operations (for example, monitoring of PPPs and SOEs). Moderator Michael KEEN, Deputy Director, Fiscal Affairs Department, IMF High-Level Panelists • ZHU Guangyao, Vice Minister of Finance, China • Somdy DOUANGDY, Deputy Prime Minister, Lao PDR • Vache GABRIELYAN, Vice Prime Minister, Armenia • Malado KABA, Minister of Economy and Finance, Guinea • Eran WICKRAMARATNE, State Minister of Finance, Sri Lanka 4 3:30-3:45 PM COFFEE BREAK 3:45-5:15 PM SESSION IV. Bringing in Other Stakeholders (e.g. Private Sector) to Maximize Benefits of BRI Strong and sustainable growth requires that public investment be accompanied by rising private investment. Indeed, to maximize the growth impact of BRI projects and ensure commercial and financial viability, bringing in private sector participation can help. This will foster strong project preparation, execution, and financing. Strengthening the business environment, including the institutional and regulatory frameworks for private sector activity, is an important objective in most BRI countries. This session will focus on how the BRI can successfully catalyze more private investment, including in infrastructure. The session will include IFIs experienced in managing such private sector participation, such as the IFC. Moderator Hans Peter LANKES, Vice President, International Financial Corporation High-Level Panelists • Arkebe Oqubay METIKU, Minister and Special Advisor to the Prime Minister, Ethiopia • Eddie YUE, Deputy Chief Executive of the Hong Kong Monetary Authority (HKMA) and Director of the HKMA Infrastructure Financing Facilitation Office (IFFO) • WANG Yanzhi, President, Silk Road Fund • Enzo QUATTROCIOCCHE, Secretary General, European Bank for Reconstruction and Development • Michael ELLAM, Co-Head of Public Sector Banking, HSBC • NAN Cunhui, Chairman, Chint Group • John WOOLLACOTT, Senior Vice President, DP World 5:15-5:45 PM CLOSING DISCUSSION ZHU Jun, Director-General, International Department, PBC Jihad AZOUR, Director, Middle East and Central Asia Department, IMF