Chinese banks to step up debt financing

The Russian Direct Investment Fund, the Russia-China Investment Fund and China Construction Bank announced on Friday a special mechanism that will increase Chinese banks' debt financing of Russian companies.

Under the new debt mechanism, the Russian Direct Investment Fund and the Russia-China Investment Fund will look at Russian borrowers with good credit ratings and evaluate every loan with Chinese banks to control risk.

The borrowers that receive loans from Chinese banks should already be or will be invested in by the Russia-China Investment Fund, or the RCIF will become a joint lender with Chinese banks.