Zhanjiang govt, banks, insurers join up to secure agricultural loans
Zhanjiang-based banks and insurers signed an agreement with the city's Municipal Bureau of Agriculture on Dec 29, ensuring local agricultural companies get better access to loans.
The Agricultural Bank of China, Postal Savings Bank of China, Guangdong Rural Credit Cooperative Union, and PICC Property and Casualty agreed to work together for a secured lending system by sharing risks.
The signing ceremony of a project aimed at providing Zhanjiang agriculture units companies with easier access to loans is held on Dec 29. [Photo/zjnw.net]
In the new system, the government will inject funds, banks will offer loans, and insurers will offer security on borrower credit, allowing agricultural firms to borrow money.
The new lending model, approved by the China Insurance Regulatory Commission, is a financial innovation of the latest stage of China's agriculture development. Guangdong province as a whole has carried out a similar project since 2009.
So far, Zhanjiang has 193 key agriculture enterprises, including seven national-level companies, generating jobs for more than 550,000 farmer households. Also home to 3,400 farm cooperatives deeply rooted in the countryside, Zhanjiang is making efforts to pave a path for agricultural business development by reducing financing difficulty.