China's central bank is urging local branches to increase credit loans to farmers to support spring plowing, a circular posted on its website said.

 

Local financial institutions should increase credit loans for farming while curbing those for non-agricultural purposes as the country had adopted a tightening monetary policy, the central bank said.

 

Rural credit cooperatives were allowed to take advantage of floating rate policies to set a more favorable loan interest rate for farmers.

 

In addition, the central bank would continue its relatively lower reserve requirement ratio for rural credit cooperatives.

 

It would also appropriate 10 billion yuan (1.4 billion U.S. dollars) to increase funds for farm loans to support the central and western regions as well as major grain production areas.

 

(Xinhua News Agency January 10, 2008)