Mexico City, March 19 (Xinhua) China has signed a memorandum of understanding with the Inter-American Development Bank (IDB), marking a substantial step forward for its entry talks with the IDB.

By signing the document, inked by Zhou Xiaochuan, governor of the People's Bank of China and IDB President Luis Alberto Moreno in Guatemala City Sunday, a formal framework was established for China's accession negotiations with the organisation.

The IDB, terming itself as the world's oldest and largest regional development bank, was founded in 1959 to promote economic and social development. China first submitted its entry application to the group in 1993, and renewed it in 2004, reports from Guatemala City said Monday.

IDB headquartered in Washington was originally a partnership between 19 Latin American countries and the US. It has gradually expanded its membership to include some Caribbean, European and Asian countries over the past years.