BEIJING, July 3 (Xinhua) -- China National Financing Guarantee Fund has recently reached an agreement with Hubei Re-Guarantee Group in volume re-guaranttee business, offering annual credit line of 10 billion yuan to ease the difficulty of financing for micro and small-sized enterprises and other entities in Hubei, reported by Hubei Daily on Thursday.
Upon this, Hubei province has formally established cooperation with the National Financing Guarantee Fund and the head offices of the first batch of China's national banks such as ICBC, Agricultural Bank of China, Bank of China, Bank of Communications. It has created new financing channels for micro and small-sized enterprises(MSEs) and the "three rural" entities including agriculture, rural areas and farmers.
The re-guarantee business cooperationwill give full play to the advantages of the banking system's risk control capacity. The banks will directly access and approve loan projects, replacing repetive investigation by guarantee institutions. This will greatly improve the efficiency of financing services, expand the scale of guarantees, and effectively alleviate the difficulty of financing for micro and small-sized enterprises and other entities.
The National Financing Guarantee Fund was jointly established by the Ministry of Finance and financial institutions with 66.1 billion yuan conducting the financing guarantee business in the form of equity investment and re-guarantee to mainly support micro and small-sized enterprises.
(Edited by Gao Jingyan with Xinhua Silk Road, gaojingyan@xinhua.org)
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