Ding Zhongchi, head of Zhejiang branch of the Industrial and Commercial Bank of China, said the ICBC would provide additional loans of 150 billion yuan (US$18 billions) for the province, 60 percent of which would go to private companies, especially small and medium-size ones.

Ding's announcement received a warm welcome from private sector representatives, who met Sunday for a seminar in Wenzhou, a city known for its booming private enterprises.

The private sector has become an important economy impetus of Zhejiang, which has over 600,000 non-government enterprises. In Wenzhou, the private sector makes up 99 percent of the city's whole economy.

Ruan Hui, vice-mayor of Wenzhou, said financing assistance for private companies was the priority for economic development in Wenzhou.

Statistics show the ICBC Zhejiang branch has granted loans totaling 608.5 billion yuan (US$76 billion) since 1997, 60 percent of which went to small and medium-sized companies.

Meanwhile, the Guangdong Development Bank signed an agreement with 150 leading non-State enterprises in the province on offering credit totaling 15.8 billion yuan (US$1.9 billion) recently, a part of its 80-billion-yuan loan scheme, announced Zhang Guanghua, president of the bank.

The agreement involved fund pooling, financial transactions, consultation and accounts settlement services, said Zhang.

The enterprises were from the industry, commerce and trade sectors which had strong market potential, he added.

The bank was taking the step in line with its market orientation, the president explained, adding that 80 percent of its customers were small and medium-sized enterprises.

The bank would carry out its service scheme by giving priority to supporting more than 100 non-State enterprises annually.

To pave way for the development of private enterprises, the bank would also offer a series of preferential services concerning credit guarantees, mortgages and consultations, according to Zhang.

(Edited by china.org.cn April 7, 2003)