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production and trade and encourages the sale of state-owned

enterprises to the private sector. Nevertheless, the Bank

finds China's progress in economic reforms satisfactory.

It is of the opinion that China has taken some rather

drastic and courageous measures to start a new wave of

reforms.

In the financial year ending 30 June 1991, the

World Bank had extended loans totalling US$1.5 billion to

China,

was significantly larger than

corresponding total of US$580 million in the preceding

financial year (which commenced shortly after the June 4th

events in 1989).

Thus apparently, lending by the World

Bank to China has returned to normal. More recently, the

loans extended by the World Bank to China were not so much

the requirement of satisfying basic human

which

constrained by

needs,

but

were

development(21). The

Asia has opined that

geared

to

the

promoting economic

World Bank's Vice President for

reforms in China's financial sector

are needed imminently, and the Bank is ready to finance

some programmes to improve information flows in China and

to enable the People's Bank of China to operate in ways

more akin to the central banks in the western countries.

14.

The Asian Development Bank (ADB) has also relaxed

(21)

centre,

environmental

protection

In July 1991, the World Bank approved a loan of US$200 million for industrial and infrastructural developments in Tianjin. Half of the loan will be used in infrastructural development, including an information "facilities, road construction, sewage projects, waste

processing,

control

and

public same month, the World Bank approved another loan of US$380 million for ૩ hydro-electric project in Sichuan. The loan is for a period of 20 years with a variable interest rate, (currently set at 7.73%), linked to the Bank's borrowing costs.

transportation.

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In the

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