TheCropSite.com- news, features, articles and disease information for the crop industry

News

Chinese Farmer Loans Reach RMB 150 bn in 2009

22 January 2010

The Agricultural Bank of China (ABC) increased its lending to farmers and rural households significantly last year, it revealed this week.

Loans from the nation's third-largest lender to rural households totalled 150 billion yuan (£13.52 billion) in 2009, reports the Xinhau News Agency.

This includes loans of 67.3 billion yuan (£6 billion) to small farmers, reports the news agency.

The announcement comes amid growing concerns that China's financial regulators are set to rein in lending by banks following a significant rise in loans approved by institutions last year.

There is worry among analysts that this could impact strong growth and by extension the global economic recovery from the downturn of the last two years.

Speaking to the Financial Times, Societe Generale global strategist Albert Edwards underlined the significance of such a move.

He said: "This sort of baby step tightening doesn't look like much but when you've had such rampant credit growth, it doesn't take much for it all to end in tears."

TheCropSite News Desk



Our Sponsors