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| David Nealis in soybean field |
China
establishes an agricultural credit guarantee company
The Chinese Ministry of Finance has informed us that China
has established an agricultural credit guarantee company.
The non-profit firm is a policy guarantee institution
which was established by the China Banking Regulatory Commission (CBRC), the Ministry
of Finance and Ministry of Agriculture.
The Ministry of Finance has said that the initial funding
of the company was more than 4 billion yuan ($611 million), including 3 billion
yuan from the State Treasury and the remaining came from 11 provincial-level
guarantee institutions that already exist.
They also stated that they expect the capital to increase
to 15 billion yuan over the next three years as more organizations join the agricultural
credit guarantee company.
According to the Ministry of Finance the goals of the
company are to set national re-guarantee business standards, and off
re-guarantees to all provincial-level guarantee organizations and developing
agricultural credit guarantee products.
We at Ceres expect this to have a positive impact on the
Chinese farmer’s cash flow and give some much needed financial relief to small
and midsize Chinese farms.
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