China on Thursday denounced the accusation that it had extended high-interest loans to poor countries, saying the criticism is "sensationalist".

"The criticism, which seeks to link the poverty of those countries to China, is pure sensationalism," said Chinese Foreign Ministry spokesman Qin Gang.

Qin's comments came in response to criticism by foreign officials.

"It's understandable that when favorable loans cannot satisfy their total economic development needs, low-income countries will seek other forms of finance, including non-favorable loans," Qin said.

"The crux is whether these loans help encourage low-income countries' economic development and reduce poverty."

As a developing country, China has done a lot to help African countries eradicate poverty, Qin said.

Over the past few years, China has waived debts of 10.5 billion RMB (1.31 billion U.S. dollars) owed by 31 African and least developed countries, the spokesman said.

Last year, China announced that it would grant tariff-free treatment to 39 least developed countries that have diplomatic ties with China, he said.

China also decided to write off loans, which had been due in 2004, of those heavily-indebted countries with diplomatic ties with China.

Qin said that China is making various efforts to improve the effect of the loans and try to be open, fair and transparent.

The favorable loans China offered to developing countries are applied to benefiting the countries' long-term development, mainly on upgrading their infrastructures, Qin said.

China has also taken other measures to help African nations eradicate poverty, including increasing imports, cutting tariff, encouraging Chinese companies to invest in Africa, he said.

The spokesman also called for developed countries to take substantial measures to cut debts of underdeveloped countries.

Source: Xinhua