ZTE was $ 20 billion credit: to provide protection for overseas expansion

Sina Technology News December 4 evening news, ZTE today announced, announced the $ 20 billion financing agreement signed with China Development Bank. This line of credit is valid for five years, mainly for ZTE to expand overseas markets.
　　According to the announcement, the State Development Bank to provide $ 20 billion for ZTE cooperation amount to these lines of credit for ZTE term loans, short-term loans, bond financing, factoring, financing, supply chain financing, guarantees, bills, letters of credit and other trade financing, mainly for ZTE's overseas project financing facilities and lines of credit, including the financing of to buy ZTE equipment and related technical services for overseas customers demand.
　　ZTE's customers, many in developing countries, the operators of these countries is the relative lack of funds overseas, ZTE need help to solve the funding problems of these operators to purchase equipment, and China's National Development Bank, the Export-Import Bank and the Bank of China mainly to provide the funds to procure the corresponding transaction is successfully completed, such as ZTE operators in countries such as Ethiopia and Nigeria in Africa in 2009 and 2010 with the signing of the project mainly rely on this model.
　　To increase the current earnings situation is different compared to the disposal of a subsidiary, ZTE Bank signed such agreements is to provide financial security for the future to expand the market. ZTE rely on this line of credit reached a specific co-operation, but also need to separately with the China Development Bank signed a financing contract.
　　According to ZTE earnings, the first three quarters of a loss of 1.7 billion yuan, the the domestic 4G licenses issued has not yet made plans, ZTE also have more energy to invest in overseas markets, in the case of tight funding, ZTE also only rely more on such institutions of the State Development Bank to provide support.