JinkoSolar is a 15-year loan of $ 58 million

Banks do not lose confidence in the photovoltaic industry. Beijing Daily Reporter learned yesterday, the domestic photovoltaic product manufacturer JinkoSolar with China State Development Bank ("CDB") has signed a 15-year total of $ 58 million loan agreement will be used to develop its domestic PV energy projects.

Can get the financing, naturally is a good thing for the beleaguered photovoltaic enterprises. JinkoSolar chairman of Lixian De said the agreement will enable them to make long-term, stable source of funding, thus strengthening their competitive advantage.

In fact, as early as the end of last year, the CDB had finalized Jinko over a period of five years a total of $ 1,000,000,000 Facility Agreement, for Jinko PV power plant construction in overseas mergers and acquisitions, project contracting and other items to provide financial support.

However, the most recent period, due to the photovoltaic leading Suntech defaulting on its debt, and its subsidiaries Suntech bankruptcy reorganization such as the impact of the negative news, the entire PV supply chain in China to tighten credit risk assessment, many financial institutions and even talk about "PV" discoloration. CDB Chairman Chen Yuan was also during this period that will limit new loans to the wind inverter industry, because of its excess capacity may result in increased risk faced by the bank asset quality.

Statistics show that the number of PV companies in 2011 to 262 in 2012 has dropped to 112. "This means that more than half of the enterprises out of the photovoltaic industry, even so, built in 2012, China PV module production capacity of 45 million kilowatts, 700% in 2009." Analysts believe that Suntech bankruptcy is most of the PV wind turbine inverter industry in China the weathervane effect of the signal means that the government is no longer unlimited the photovoltaic enterprises blood transfusion, but decided to let the market survival of the fittest, the PV industry in China to enter the re-shuffling of.

However, as a state-owned policy banks, CDB bear more political than other commercial banks mission. It is understood that the CDB by the State Council approved the establishment of policy-oriented financial institutions, whose main task is to establish long-term stable source of funds, raise and guide social capital, focusing on infrastructure, basic industries and pillar industries and high-tech industry and its supporting projects, as well as the Government's urgent need to develop other areas.

"The present government is vigorously support the photovoltaic industry to return to the domestic market, the China Development Bank to play its natural functions. CDB shot again this time, in fact, reflects the deep was devastated in the photovoltaic solar charge controller industry, the state of its confidence in the development. "photovoltaic industry so analysts say. Experts have pointed out that now, the PV industry in China has entered the shuffle cycle. From historical experience, at the right time to reshuffle will not necessarily be the development of related industries to bring drag, but will make the industry to win more broad space for development.