Visiting Chinese Premier Li Keqiang on Monday announced financing support for cooperation between China and 16 Central and Eastern European countries (CEEC), also known as the 16+1 cooperation.

Li announced the establishment of China-CEEC Inter-Bank Association and the second phase of China-Central and Eastern Europe Investment Cooperation Fund in a keynote speech to the seventh China-CEEC Economic and Trade Forum held in the Hungarian capital city of Budapest.

The China Development Bank will provide an equivalent amount of 2 billion euros (US$2.4 billion) as development-oriented financial cooperation loans for the inter-bank association, Li said.

Meanwhile, the Chinese premier said the second phase of the investment cooperation fund that totaled 1 billion dollars will be mainly invested in Central and Eastern Europe.

The two sides need to further expand financing channels, Li said.

China supports commercial and development financial institutions to provide finance for bilateral cooperation projects, supports companies from Central and Eastern European countries to issue Panda Bonds in China, and also supports the two sides to conduct renminbi-denominated financing business for their cooperation projects, Li said.

Li arrived in Budapest on Sunday for an official visit to Hungary and for the sixth meeting of heads of government of China and 16 Central and Eastern European countries.

During his stay in Hungary, Li will hold bilateral meetings with CEEC leaders and work with them to outline future cooperation. He will also witness the signing of a series of cooperation documents and celebrate the fifth anniversary of the establishment of the 16+1 cooperation.