Chinese banks granted 150.2 billionyuan (18.3 billion US dollars) in agricultural loans in the first quarter of this year, 18 percent up from the same period of last year, official figures showed.

The China Banking Regulatory Commission said in a press releaseissued Tuesday that the outstanding loans for the agricultural sector totaled 1.34 trillion yuan (163.4 billion US dollars) by the end of March, 150.2 billion yuan more than Jan. 1 of this year,the commission said.

Short-term loans for the agricultural sector, or loans with a maturity term of 12 months or shorter, rose 141.2 billion yuan (17.2 billion US dollars) during the quarter, up 56.1 billion yuan (6.8 billion US dollars) year-on-year.

The increased short-term loans accounted for 94 percent of the total increased loans for the agricultural sector, indicating the country's banking institutions have increased their lending for spring production in response to the central government's call forgreater support for agriculture.

Medium- and long-term loans for agriculture, however, grew by 9billion yuan (1.1 billion US dollars) during the quarter, down by 27.7 billion yuan (3.37 billion US dollars) year-on-year.

In response to rising cereal prices triggered by reduction of grain output in the past several years and growing concerns over food security and the widening gap between rural and urban residents, the Chinese leadership have introduced a package of policies and measures to boost grain production and increase farmers' income since late last year, including more investment inagriculture and reduced financial burdens on farmers.

Source: Xinhua