Guangdong Development Bank has signed a deal involving 1 billion yuan (US$120 million) with Eastman Kodak (China) to finance would-be photographic business investors in China.
Yesterday two photo service shops in Beijing, Jingli and Huangshan, became the first beneficiaries of the cooperation, winning 1.5 million yuan (US$180,000) in loans to buy digital photographic equipment to expand their business.
Potential investors in Guangdong and Zhejiang provinces are also likely to get the loans soon, according to an official with Kodak.
The service will gradually be expanded to more areas across the country through the bank's 500 outlets nationwide.
According to the agreement, the bank will offer potential imaging business investors recommended by Kodak credits worth as high as 50 percent of the cost of a whole set of Kodak's colour film developing equipment for their business.
Meanwhile the bank will issue acceptance bills for Kodak's franchisers in China to speed up their capital turnover and the circulation of Kodak's photographic products.
An official with the Beijing branch of Guangdong Development Bank said yesterday that co-operation with Kodak aims to support private investment in China.
China has been encouraging private investment. Last year, the country's Individual Solely Owned Enterprise Law was promulgated, which is widely believed to spur on a new round of private investments in China.
"This creates a huge market for banks to provide service for private investment," the official said.
Last year, Kodak also signed an agreement with the Shanghai branch of the Industrial and Commercial Bank of China to provide loans for Shanghai investors applying to open a Kodak Express Store (KEX).
"By providing loans for investors, we lower the threshold for individual investors to enter the imaging industry," said Richard Tao with Kodak (China).
Since the first KEX was opened in China in 1994, more than 6,000 KEXs have opened across the country.
The market potential for more photographic service shops remains huge, Tao said.
(China Daily 06/21/2001)
