From 2026, Germany will no longer grant promotional loans to China. The Federal Development Ministry (BMZ) confirmed that it had informed the Chinese Ministry of Finance in mid-September of the federal government’s decision to discontinue the granting of promotional loans to China. Accordingly, contracts for promotional loan projects between the state-owned KfW Bank and the Chinese Ministry of Finance can only be signed up to and including 2025.
“These promotional loan projects must have ambitious impacts in the climate and environmental areas,” it said. The federal government assumes liability for promotional loans, but does not provide any budget funds itself. As a now highly developed economy, China has access to the international capital market and can refinance itself there on favorable terms, the BMZ said. From 2013 to 2022, promotional loans with a total volume of 3.451 billion euros were concluded with China. No promotional loans were granted in 2023.
“We are no longer treating China as a developing country,” said Development Minister Svenja Schulze. “China is and remains an important partner, without whom we cannot successfully overcome global crises.” China is expected to participate in tackling global challenges according to its capabilities