Japan's low-interest yen loans to China are likely to be cut by 20 percent, to about 96.7 billion yen (US$870 million) in fiscal year 2003. The sum is the lowest in 14 years.

 

The sum would demote China to the third largest yen loan recipient, after India and Indonesia.

 

This is also the first time China's Overseas Development Assistance loan repayment has topped the amount of fresh aid.

 

Aid amounts determined in a given budget year are delivered in subsequent years.

 

Japan decided to start cutting back Official Development Assistance to China three years ago.

 

(CRI.com March 12, 2004)