Source: Xinhua

04-20-2009 09:09

Special Report:   Global Financial Crisis
Special Report:   Boao Forum for Asia 2009

BOAO, Hainan, April 19 (Xinhua) -- China's stimulus plans are very impressive, and more investment will be the key to success, Lawrence Greenwood Jr., vice president of the Asian Development Bank (ADB), said in an exclusive interview with Xinhua on Saturday.

Under the moderately easy monetary policy adopted by the government late last year, China's bank lending increased by a record high of 1.89 trillion yuan (277.9 billion U.S. dollars) in March, making new loans in the first quarter of this year reach 4.58 trillion yuan, or 93 percent of the annual target of new loans for the entire year of 2009, according to data released by the People's Bank of China, the country's central bank.

China's monetary policy expansion was probably "the largest and the most effective in the history of mankind", Greenwood said at the Boao Forum for Asia (BFA) in China's southern province of Hainan.

Though large credit increase might lead to more bad loans, but that was "a secondary consideration at this stage of the crisis," Greenwood said.

The expansion of credit is needed to stimulate economic activities, and to get the economy going again, he said, adding it is the best way to avoid non-performing loans.

China's economic stimulus package plan is already paying off, and positive changes have taken place in the economy, Premier Wen Jiabao said Saturday at the opening ceremony of the BFA annual conference 2009.

"The situation is better than expected," Wen said, adding that the "swift" and "decisive" measures taken by China to deal with the crisis have proved essential for easing major problems in the economy.