The Agricultural Development Bank of China (ADBC) has
been given the go-ahead from the state banking watchdog to provide
loans to small agro-firms all over the country this
year.
The China Banking Regulatory Commission has approved
the issuance of the loans by all ADBC branches to small firms
involved in the planting, breeding, processing and distribution
industries after a pilot scheme was deemed a success in four
provinces.
In a bid to modernize China's rural areas, ADBC was
given the nod to issue the loans from four branches in Shandong, Jiangxi, Fujian and Chongqing in March last year in what was
described as a "breakthrough" for the policy bank whose loans
mostly go to large government-designated agricultural and rural
projects.
By the end of March this year, these branches had
issued 1.15 billion yuan (US$143.75 million) of loans to 186
agro-firms.
The bank has forecast a loan demand of more than 30
billion yuan from small agro-firms in 2007.
China set up ADBC and two other policy banks - China
Development Bank and the Export-Import Bank of China - in 1994 as
key channels of policy financing, a move that enabled the "Big
Four" state commercial banks to be solely devoted to commercial
business.
The "Big Four" state commercial banks are the
Industrial and Commercial Bank of China, the Bank of China, the
Agricultural Bank of China and China Construction Bank.
(Xinhua News Agency April 18, 2007)
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