China’s central bank announced on Thursday [27 March 2014] it has issued a guideline to step up the creation of a credit system for serving small and micro-sized companies and farming households. The guideline targets to help small companies and farmers with good credit secure loans, and promote their healthy growth, the People’s Bank of China (PBOC) said in a statement. Since 2006, the central bank has tried to set up a credit system for the above-mentioned entities. By the end of last year, the PBOC had compiled credit archives for 2.43 million small and micro companies and 151 million farming households, the statement said…Full Article: China Daily Mar 2014

Key point

  • The system will be initially piloted in 31 cities and 32 counties, including Gaoling County, Shaanxi Province

ChinaAg Comment

  • In February 2014, China’s central bank announced they will institute customized financial services in order to modernize farming practices. For example, farmers who cultivate fruit or other crops will long growth cycles will be eligible to receive loans that have a maturity length of up to 10 years

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