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November 22, 2002



Deal Firms Sino-German Finance Relations

Sino-German co-operation received a boost on Tuesday when a new financial loan and assistance agreement was signed in Hangzhou, capital of East China's Zhejiang Province.

The DM180 million (US$84 million) deal is between China's Ministry of Finance and top German bank Kreditanstalt fuer Wiederaufbau (KfW).

"It's another important step that the two countries have taken on their long road of financial co-operation since 1985," said Xu Fangming, who heads the ministry's Financial Department. "This agreement is again expected to make its contribution to the development of China."

According to the contract, 89 per cent of the total will go on imports of a range of facilities for railway construction, while the remainder will assist economically disadvantaged areas in the central and northern parts of the country.

At KfW's invitation, more than 20 domestic and foreign banking and finance experts have been gathering in Hangzhou to discuss how China can best meet the challenges of WTO accession.

"The healthy running of the banking system is a key element in the country's economic development," said KfW executive director Klaus Engelen.

He called for active measures to set up a more internationally based management and operating system for the financial sector. He also counselled efforts to develop a more scientific accounting and revenuing system.

(china Daily 09/26/2001)

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