As of the end of May, CDB had completed the delivery of 10 billion RMB in special loans for spring plowing, covering 27 provinces, autonomous regions and municipalities across the country. The special loans supported agricultural enterprises in the resumption of work and production, and provided an efficient, low-cost financing guarantee for springtime agricultural production.
In late February, CDB set up a special loan facility offering preferential conditions in terms of interest rates and credit structure, with the goal of lowering the financing costs of agricultural enterprises through practical means. To speed up loan approvals and provide efficient services, CDB opened a “green channel” to respond to financing needs put forward by enterprises within 24 hours, and delegated the approval authority to lower-level CDB branches. Meanwhile, the CDB headquarters and its branches worked together on risk management to make sure the loans used were approved and earmarked.
The facility gave priority to supporting enterprises in the national supply and marketing cooperatives system, with loans worth 7.34 billion RMB being issued to safeguard the production and circulation of agricultural materials such as seeds, pesticides, fertilizers, and fodder. For example, the infrastructure department under CDB’s Poverty Relief Program Finance worked with CDB Beijing branch to grant a 4.42 billion RMB loan to the leading fertilizer and pesticide enterprises affiliated with China Co-op Group (CCOOPG), helping them to purchase 1.75 million tons of fertilizers and 10,000 tons of pesticides, thus enhancing CCOOPG’s risk-pool role for the industry and reducing the impact of the COVID-19 epidemic on front-line fertilizer and pesticide supplies. In Hubei Province, CDB Hubei Branch overcame the adverse conditions of the lockdown and granted a 266 million RMB loan to the Hubei Provincial Supply and Marketing Cooperative and Xingfa Group via a newly-installed “green channel” to secure fertilizer production and circulation.
In addition, CDB actively supported local farming enterprises and leading agricultural enterprises across the country in the resumption of work and production, ensuring the stable supply of grain and live hogs. In Xinjiang, CDB Xinjiang Branch offered and granted a special loan worth 770 million RMB to the Xinjiang Production and Construction Corps and key enterprises including Yankuang Xinjiang Coal Chemical Company, contributing to the autonomous region’s food production and income, and aiding in the fight against poverty. CDB Zhejiang Branch granted a 450 million RMB special loan to the province’s leading agricultural enterprises to support the smooth rollout of spring plowing. In Sichuan Province, CDB Sichuan Branch granted a total of 150 million RMB in loans to New Hope Liuhe Co., Ltd., China’s biggest fodder production enterprise, to help safeguard its supply during the epidemic. CDB Hainan Branch supported Haiken Group, the provincial farming enterprise, with a 50 million RMB loan to help its rubber department resume work and production, safeguarding a stable supply of the national strategic material.
Looking ahead, CDB will help improve the country’s comprehensive agricultural capabilities by enhancing support for cultivation of well-facilitated farmlands, filling gaps in agricultural and rural infrastructure, developing rural industries, and safeguarding key agricultural supplies. These measures will help achieve the “Six Stabilities” and “Six Securities” and contribute to China’s economic growth and social stabilization.
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