Moves to help farmers get loans

Source: Xinhua  |   2008-6-9  |     NEWSPAPER EDITION

CHINA will take measures to help farmers in the country's rural areas access credit and loans more easily, the China Banking Regulatory Commission said.

"Farmers in rural areas find it difficult to get loans from lenders, while financial institutions, including banks, face difficulties when extending loans to farmers," said Zang Jingfan, director of CBRC's cooperative finance supervision department.

Zang attributed the problem to a lack of mechanism in the banking and financing system.

The CBRC urged banks nationwide to speed up financial innovations and reforms in a bid to meet the diversified demands in the rural areas. The banks should also explore new ways in providing loans so that lenders can avoid or at least transfer credit risk.

Zang underscored the importance of introducing different types of loan-security modes.

These should involve individual farm households, major enterprises, financial institutions, insurers and banks.

China had 41 types of rural financial institutions as of the end of May. This included 28 county- and village-level financial organs, nine capital mutual aid organizations, and four credit companies.

Farm households and small enterprises in rural areas were the main beneficiaries of credit from these rural financial institutions.

As of May, data showed farm households and small-sized enterprises had received 640 million yuan (US$92.4 million) and 370 million yuan, respectively, in loans, according to Zang.