Germany to End Promotional Loans to China by 2026, Citing China's Developed Economy Status
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Germany will stop granting promotional loans to China from 2026. The German development ministry informed China of this decision.
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Germany is no longer treating China as a developing country. But China remains an important partner.
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Contracts for promotional loans between KfW Bank and China can only be signed until 2025. These loans must have climate and environment impacts.
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China can access capital markets itself due to being a highly developed economy.
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From 2013-2022, Germany provided 3.451 billion euros in promotional loans to China. No loans were given in 2023.