Strict rules to be set for lending

PUBLISHED : Thursday, 09 June, 1994, 12:00am
UPDATED : Thursday, 09 June, 1994, 12:00am

ALTHOUGH specifically set up to support the state machinery and electronic trade, the Import and Export Bank (IEB) of China will lay down strict lending criteria.

One of the three banks to provide policy lending, the IEB will apply lending guidelines similar to those of commercial banks, but taking into account the country's priorities.

''Although it is one of the three policy banks, it does not mean that the IEB would provide lending to any import and export corporation indiscriminately,'' said Tong Zhiguang, the chief executive of the new bank.

The IEB would mainly provide credits and guarantees for the import and export of complete sets of large-scale machinery and electronic products.

Funds for the IEB will come from the Ministry of Finance, the People's Bank of China and the issuance of financial bonds to financial institutions.

The other two policy banks are the State Development Bank (SDB) and the Agricultural Development Bank of China (ADBC).