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BEIJING -- The export and import banks of China and the United States jointly announced Thursday that they have completed negotiations on a form of standard medium-term credit agreement, with which both borrowers and lenders will conform for each specific transactions.

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The announcement was made at a press briefing presented by heads of both banks. By providing financing for transactions with 20 million US dollars or less, the milestone agreement will lead to increased sales of US exports, according to the announcement.

The loans will be guaranteed by the Ministry of Finance of China and supported by the Export-Import Bank of the United States with medium-term export credit guarantee.

Both sides said the pre-negotiated form of standard medium-term credit agreement will benefit businesses in both countries. U.S. exporters and Chinese importers can expect a substantial reduction in the time it takes to document the financing for their export sales.

Li Ruogu, chairman and president of the Export-Import Bank of China, said "the cooperation in sovereign guarantee financing will help boost exports of advanced technology and equipment from the US to China, strengthen economic and trade ties between the two countries, and will definitely breathe new life into the two economies."

Chairman and President of the Export-Import Bank of the United States James H. Lambright said, "China is the fourth largest economy in the world. By making it easier to finance U.S. exports to this huge market we are supporting high-quality jobs in the United States while improving the bilateral trade balance."

The chairmen of both banks encouraged those looking to take advantage of export credit transactions under the new medium-term credit agreement to submit applications.