MANILA, April 25 (Xinhua) -- The Asian Development Bank (ADB) approved a total 7.4 billion U.S. dollars in loans in 2006, 28 percent more than that of the previous year, the bank said in its annual report on Wednesday.

    There are 67 projects supported by the loans approved in 2006, according to the ADB Annual Report 2006, released by its headquarters in Manila ahead of the 40th Annual Meeting to be held on May 4 in Kyoto, Japan.

    "Sustainable economic growth was the most prevalent theme," the report said of the projects in various developing countries that have been funded by the ADB loans.

    In the country statistics, China received 1.6 billion U.S. dollars, or 21 percent of the total loans that the ADB extended last year, making it the biggest loan recipient.

    From the sectors' perspective, the finance sector was the top recipient of ADB loans last year, receiving 1.8 billion U.S. dollars or 24 percent of total loans, the report said.

    On the other hand, grants approved by the ADB in 2006 amounted to 538.4 million U.S. dollars, earmarked for 43 projects. This amount is less than half the 1.1 billion U.S. dollars in grants approved in 2005, when more funds were needed to address the loss of the Indian Ocean tsunami and the earthquake in Pakistan, the report added.

    The annual report said the ADB's country strategies are becoming more selective, more responsive to country priorities, and have better monitoring frameworks. The proportion of projects at risk is declining and project performance has continued its upward trend, said the annual report.

    Based in Manila, the ADB is a multilateral, regional development bank established in 1966 to promote economic and social development in Asian and Pacific countries through loans and technical assistance.