China's Banks And Enterprises Cooperate in Industrial Reform

FUZHOU, July 29 (Xinhua) -- Eight banks, including the Fuzhou branches of the Industrial and Commercial Bank of China and the Agricultural Bank of China, signed agreements or letters of intents with 36 enterprises today to offer them loans for key industrial restructuring projects.

The bank loans of 2.36 billion yuan (279.2 million US dollars) , together with the 830 million yuan accumulated by the enterprises, amount to two-thirds of the 50 key projects' total funds. When accomplished, these projects will be able to add another 12.2 billion yuan to their output value, bringing profits of 1.81 billion.

The city has long suffered from industrial structure problems such as an imbalance of supply and demand and the slow development of pillar and new industries.

The city government therefore entrusted the China International Engineering Consulting Corp. last August with creating a three- year readjustment plan to solve these problems. This plan was completed and implemented last April.

The plan names electronic information, machinery, and light industry as pillar industries, and textile, pharmaceuticals, and chemicals as key industries. It also selects 112 key readjustment projects in these fields with a total investment of 12 billion yuan. Among these, 77 will be accomplished this year or next, and when they become operational they will increase sales volume by another 26.47 billion yuan, with profits of 5.4 billion.