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Bank of China to Give a Push to Volvo

Bank of China said Thursday it would carve out more short and long term loans for market expansion of a Chinese subsidiary wholly owned by worldwide leading auto maker AB Volvo.

The bank's credit support for Volvo (China) Investment Co. Ltd. would also include project loans, acceptance of bills, guarantees, letters of credit, among others according to a cooperative agreement between them.

Bank of China's comprehensive financial services for the company would cover cash management, settlement of foreign exchange, banker's acceptance and settlement and sales of forward exchange.

These have set "strategic cooperative" ties between Bank of China and Volvo (China) on the basis of existing cooperation, in an effort to ensure fund supply for Volvo to bolster its presence Chinese market, a bank spokesman said.

Volvo (China) has established a number of joint ventures -- rolling out buses and trucks -- with Chinese counterparts in Shanghai, Xi'an and Jinan cities, and it owns two wholly funded enterprises that produce building equipment and auto parts in China.

AB Volvo, headquartered in Gothenburg, Sweden, is one of the largest industrial groups in northern Europe and its primary products include heavy trucks, buses and engineering machinery.

Bank of China said it could also offer financial support for ABVolvo's customers and dealers, including individual loans and working capital.

The bank's branches in Shaanxi, northwest China and Singapore have already been in fruitful cooperation with Volvo, the spokesman said, without giving details.
 
(Xinhua News Agency March 5, 2004)

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Volvo Vows to Boost China Sales
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