On March 19-20, 2006, a Chinesedelegation led by Governor Zhou Xiaochuan of the People’s Bank of China (thePBC) attended the annual meeting of the Inter-American Development Bank (theIDB) as an observer in Guatemala City, the capital of Guatemala. On behalf of the government of the People’s Republicof China (China), GovernorZhou signed the Memorandum of Understanding on China’sadmission to membership into the IDB with President Moreno of the IDB on March18.

Chinabecame an observer of the IDB in 1991 and filed a formal application foradmission to membership into IDB on 1993. Over the past decade and more, China has been making consistent efforts to attain thisobjective. The signing of this MOU is of great significance for it marks the beginningof a new phase of cooperation and lays a foundation for China’s admission. China’sadmission to membership into the IDB will further facilitate trade and economiccooperation between China and Latin America and benefit the people in this region and China. It is in the interests of China,Latin American countries and the IDB. The two parties decide to continue consultationson admission immediately after the annual meeting.

The Inter-American Development Bank Group, founded in1959, includes three institutions, i.e. the Inter-American Development Bank,the Inter-American Investment Corporation, and Multi-Investment Fund. It is thelargest and oldest regional inter-government development financial institutionin the world. Its mandate is to promote economic and social development of Latin America and the Caribbean regions.Its headquarters is located in Washington D.C., the capital ofthe United States of America. Forty-seven member countries andobservers attended the annul meeting.