Credit Promissory Agencies Set for Private Firms

Northwest China's Gansu Province has set up 12 credit promissory agencies to vouch for loans to medium-sized and small enterprises, especially private firms, in the province.

By the end of June this year, the province had 354,700 private businesses, hiring a total of 660,000 people. The business reports a production value of 890 million yuan (US$107.23 million) and a sale value of 8.3 billion yuan (US$1 billion).

According to a local official, the medium-sized and small enterprises in Gansu need loans totaling two billion yuan (US$240 million) each year.

"But loans to the enterprises amount only to 200 million yuan (US$24,10 million) annually, 10 percent of the need," the official said. He said the lack of capital has become a bottleneck in their development.

The sticking point for getting sufficient loans is the incomplete credit promissory system.

With a total capital of 600 million yuan (US$72.29 million), the 12 credit promissory agencies have so far provided credit surety for 24 medium-sized and small enterprises, obtaining 126 million yuan (US$15.18 million) in loans.

(Xinhua 11/15/2000)



In This Series

Private Enterprises Grow Stronger

NW China Province Improves Highway Network

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