The export and import banks of China and the US jointly
announced yesterday that they have completed negotiations on a form
of standard medium-term credit agreement, with which both borrowers
and lenders will conform for each specific transactions.
The announcement was made at a press briefing by heads of both
banks. By providing finance for transactions of US$20 million or
less this milestone agreement will lead to increased sales of US
exports, according to the announcement.
The loans will be guaranteed by China's Ministry of Finance and
supported by the Export-Import Bank of the US with medium-term
export credit guarantee.
Both said the pre-negotiated form of standard medium-term credit
agreement would benefit businesses in the two countries. US
exporters and Chinese importers can expect a substantial reduction
in the time taken to document the financing of export sales.
Li Ruogu, chairman and president of the Export-Import Bank of
China, said, "The cooperation in sovereign guarantee financing will
help boost exports of advanced technology and equipment from the US
to China, strengthen economic and trade ties between the two
countries and will definitely breathe new life into the two
economies."
Chairman and President of the Export-Import Bank of the US,
James H. Lambright, said, "China is the fourth largest economy in
the world. By making it easier to finance US exports to this huge
market we're supporting high-quality jobs in the US while improving
the bilateral trade balance."
Both Li and Lambright encouraged those observing the initiative
to take advantage of export credit transactions under the new
medium-term credit agreement and submit applications.
(Xinhua News Agency December 15, 2006)