The second priority is to address a series of misaligned incentives. It has been belatedly recognized that the severing of the long-term relationship between originator and borrower contributed to a decline in credit quality. Further, within several global financial institutions, there were also inappropriate incentives created by the funding of trading desks at risk-free rates and poorly designed compensation structures.
In addition, the Chinese government has provided training to nearly 7,000 African personnel in various areas. Honoring it commitment ahead of schedule, China reduced the bilateral debts of 31 African countries totaling USD1.3 billion.