China's central bank is urging local branches to increase credit
loans to farmers to support spring plowing, a circular posted on
its website said.
Local financial institutions should increase credit loans for
farming while curbing those for non-agricultural purposes as the
country had adopted a tightening monetary policy, the central bank
said.
Rural credit cooperatives were allowed to take advantage of
floating rate policies to set a more favorable loan interest rate
for farmers.
In addition, the central bank would continue its relatively
lower reserve requirement ratio for rural credit cooperatives.
It would also appropriate 10 billion yuan (1.4 billion U.S.
dollars) to increase funds for farm loans to support the central
and western regions as well as major grain production areas.
(Xinhua News Agency January 10, 2008)
