In an effort to modernize China's rural areas, the
Agricultural Development Bank of China (ADBC) will provide loans to
small agro-firms nationwide next year following the success of its
pilot scheme.
ADBC was given the nod to grant loans to small
agro-firms back in March in a "breakthrough" for the policy bank
whose loans currently mostly serve large government-designated
agricultural and rural projects.
"The pilot business conducted by the ADBC's Shandong, Jiangxi, Fujian and Chongqing branches have proven to be a success
after eight months," said the bank in a statement.
Between March and November, these branches issued 960
million yuan (US$123 million) of loans to 152 projects, covering
fruit, poultry, aquatic products, forestry, tea, flower, honey and
herbal medicine. These projects are estimated to have created
28,000 jobs and an economic output of 2.5 billion yuan (US$156
million).
ADBC said the loan interest payments had been paid in
full so far, forecasting a 30-billion-yuan (US$3.85 billion) loan
demand from small agro-firms next year.
ADBC said it applied to the state banking watchdog and
made detailed preparations to offer loans in all its branches next
year.
China set up ADBC and two
other policy banks - China Development Bank and The Export-Import
Bank of China - in 1994 as key policy financing channels, a move
that enabled the other Big Four state banks to devote themselves
solely to commercial business.
(Xinhua News Agency December 18, 2006)
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