Xinhua news agency reporters Bu Peng
Vilnius (CNFIN.COM/XINHUA08.COM) Chinese enterprise IZP and Lithuania's central bank signed a cooperation agreement about setting up band card organization on June 22th. IZP’s Globebill was allowed to carry out card organization business in Lithuania. Globebill, as a dual-currency card organization, was being introduced to Lithuania where is also the basis for exploring European market.
Recently, the general office of the state council issued "the guidelines of general office of the state council on promoting cross-border e-commerce healthy and rapid development" (hereinafter referred to as "guidelines"). The cooperation between China and Lithuania was made under the background of the "opinions" issued.
IZP chairman Luo Feng told Xinhua reporters that the cooperation of IZP and Lithuania's central bank mainly includes: the both sides introduce Globebill as a dual-currency card organization to Lithuania where is also the basis for exploring European market; set up automatic clearing institute for card organize clearing; Lithuania's central bank will assist Globebill to set up legal entity and obtain electronic currency agency licence that allow the licencee to open an international bank account and to provide payment support; Globebill network will be connected to European retail payment system (SEPA – MMS) and real-time settlement RTGS system (TARGET2); Lithuania's central bank will assist Globebill build up platform, promoting further cooperation between China and Lithuania. an Europe oriented Globebill settlement center that connects with local banks in Lithuania and other European countries and will become a unified channel for trade between China and countries in this region; Globebill will issue Globebill credit cards for both enterprises and individuals in Lithuania and European countries.
Luo Feng said: “Lithuania is a member of European Union and the destination of IZP Silk Road Station project, adhering to the concept of "finance in advance", the first task is connecting Lithuania's central bank and the whole clearing systems of European Union in the euro zone. IZP Silk Road Station is the practice of the national strategy of One Belt and One Road, and the clearing and settlement system based on RMB is one of the essential elements.
The cooperation between China and Lithuania will be beneficial to Enterprises from the two countries. Luo Feng said that US dollar now is as an intermediary currency in the exchange process of Euro and RMB. The process will upgrade to the direct exchange between Euro and RMB, which will reduce the time and cost during the process of trade for enterprises. The cooperation can promote the trade between China and Lithuania, and help to enhance the level of trade facilitation between China and EU and deepen Sino-EU economic and trade cooperation.
The cooperation will help IZP enter into Lithuania market. IZP group will carry out financial operations in One Belt and One Road region, and gradually establish a global RMB clearing system which will promote the internationalization of RMB.
Lithuania is located in the Baltic Sea and next to Russia, Latvia, Belarus and Poland with advantages on road and waterway transportation. Lithuania is an important hub of One Belt and One Road and can be used as a portal for Chinese enterprises to enter the European market. As the deepening of trade between Europe and China, establishing a payment and settlement systems in this region is necessary.