of these issues. the current problems in argentina have served as a catalyst to refocus the attention of the international community on what was needed " to increase the predictability and reduce the uncertainty about official policy actions in the emerging markets. " the g - 7 action plan identifies the key elements of a successful framework for crisis prevention and resolution, and how these elements fit together to help align incentives for debtors and creditors. first, it recognizes the need for limits on official lending. second, it recognizes the need for rules in loan contracts to allow a cooling - off or standstill period and prevent small groups of creditors from blocking a reasonable restructuring deal. the plan also encourages the imf to continue its important work to find some mechanisms for sovereign debt restructuring analogous to domestic corporate bankruptcy procedures, such as chapter 11 in the united states and the companies'creditors arrangement act ( ccaa ) in canada. the g - 7 countries have pledged to work with borrowers and creditors to make sure that these ideas can be effectively put into practice. clearly, a lot more needs to be done, including work on operational and legal issues. but let us not lose sight of why this work is important. the action plan, by helping to reduce the incidence of financial crises and to better resolve them when they do occur, will create conditions that encourage sustained and sustainable growth of private investment in emerging - market countries, thus helping to raise their living standards. concluding thoughts to conclude, considerable progress has been made in defining the elements of a strategy to reduce the incidence of crises in the future. when it comes to crisis management and resolution, the international community is still hard at work. many issues on how to put in place a framework for promoting orderly debt restructuring remain outstanding. but significant progress is being made. the stakes are high — not only because of the economic costs, but because of the social costs and the human suffering caused by financial crises. and, in an increasingly integrated world, more than ever, we are all in this together.

flowing to low - level duplicated constructions and over - investment sectors, the people ’ s bank of china has encouraged and guided the commercial banks to increase credit support to the agriculture sector, small and medium - sized enterprises, consumer demand and job creation. in the meantime, constructions of corporate and individual credit information registration systems were strengthened and legislation related to promoting consumer credit was further improved. moreover, administrative rules on small - amount guarantee loans for unemployed workers was enhanced and loan approval procedures were simplified to encourage banks to increase loan support to those qualified labor - intensive small businesses in which certain proportion of job vacancies are filled by laid - off workers. rapid growth of the chinese economy and the following austerity measures taken by the government recently has aroused wide concerns of the international community. some people are worried the chinese economy may lose control and head for persistent overheating while others are concerned about the destabilizing effects a hard brake on the chinese economy may bring to the world economy still on the course of recovery. here, i would like to assure our friends that the chinese government remains crystal - clear about the current economic situation and is taking timely, prudent and appropriate measures to address the problems. some measures have already started to take effects, and we are fully confident that existing problems in the current process of economic development will be resolved and the good growth momentum will be maintained without ups and downs. iii. sequenced gradual reform of the rmb exchange rate regime like the overall economic reform, china ’ s foreign exchange rate system reform is also a gradual and sequenced process. before economic opening up, management of foreign exchange earnings and expenses was centralized and rmb exchange rate was decided and adjusted solely by the government. after 1979, enterprises were allowed to retain foreign exchange earnings and a foreign exchange swap market was established to form dual exchange rates in china, namely the official exchange rate and the swap market exchange rate. with foreign exchange system reform introduced in 1994, foreign exchange purchase and sale was required to be effected through the banking system and a nation - wide inter - bank foreign exchange market was thus put into place, leading to the formation of the so - called managed floating foreign exchange rate system based on market supply and demand of foreign exchange. such a system has since remained unchanged. the rmb exchange rate has been allowed to fluctuate since 1994. during 1994 - 1997, the rmb appreciated from 8. 7 yuan per us dollar to 8. 3 yuan per us dollar.