It had been providing China with nearly $2 billion a year, equivalent to about 10 percent of its total annual lending.

Last year their 20% of total lending was well ahead of Britain's 17% share.

The bank's total lending for the year was $20.2 billion.

"Banks are writing off bad loans and lending less, so total lending is declining," he said.

Last year, only $218 million in new emergency loans were made out of total lending of nearly $4.4 billion.

This was where the Bank of England requested banks to restrict total lending.

It takes the total lending for the year to £157.7bn - 11pc ahead of the nine-month target of £142.5bn.

Combined with existing international assistance, the new pact would bring total lending to Russia to $22.6 billion over this year and next.

It said total new lending in the first three months of 1987 rose $60 billion, compared with a rise of $25 billion a year ago.

Bank officials predict loans for such projects will reach 40 percent of total educational lending.