The Agricultural Development Bank of China (ADBC) will provide
loans to small agro-firms all over the country next year following
the success of its pilot scheme.
In a move to modernize China's rural areas, ADBC was given the
nod to grant loans to small agro-firms in March this year in what
was described as a "breakthrough" for the policy bank whose loans
mostly go to 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.
The bank forecasts a 30-billion-yuan (US$3.85 billion) loan
demand from small agro-firms next year.
ADBC said it had made applications 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 channels
of policy financing, a move that enabled the other Big Four state
banks to be solely devoted to commercial business.
(Xinhua News Agency December 18, 2006)