Shareholding system reform of the Agricultural Bank of China (ABC) will shortly be operationalised, reports China Business News.
Insiders said that the relevant supervision departments have achieved agreement on investing 20 billion US dollars in ABC through Central Huijin Investment Corporation. Huijin has previously invested 22.5 billion dollars in Bank of China, 22.5 billion dollars in China Construction Bank, 15 billion dollars in Industrial and Commercial Bank of China, and 20 billion dollars in China Development Bank.
Within the framework of ABC's financial reorganization, the process of dealing with 800 billion yuan of bad loans is in suspense. It is understood that bad loans will not be reissued after being split off in the books, but will be recalled and handled by other ABC sections.
According to its accounts, ABC's balance of bad loans had already reached 818 billion yuan by the end of 2007; its bad loan ratio was 23.50 percent.
For more details, please read the complete story in Chinese:
(China.org.cn by Fan Junmei, October 10, 2008)