The Export-Import Bank of China will loan five billion yuan (61 million US dollars) to domestic automobile maker Chery Automobile Company Ltd for the company's overseas business expansion, the bank announced Friday.

The bank said the loan will aid Chery in its foreign investment and overseas contracts for its cars and other mechanical, electrical and high-tech products.

The move furthers state support to the domestic car industry in its efforts to enter the international market. The Export-Import Bank of China, the world's third largest state-owned export creditbank, frequently finances major state companies for foreign expansion projects.

Chery has sold nearly 300,000 cars since 2001. The company launched its foreign business in 2001, mainly in the form of Completely Knocked Down (CKD), a range of models exported in kit form to be assembled by the owner in another country.

Chery has car and CKD sales contracts with 25 countries.

(Xinhua News Agency March 7, 2005)