Reform of rural credit cooperative has been expanded to 21 provinces and cities. Plus eight provinces and cities that were involved in experimental reform last year, the reform has been carried out nationwide, says China Banking Regulatory Commission.

Depending on different situations in different regions, experiment to introduce shareholding or partnership cooperative systems will be carried out. Transferring the management of the cooperatives to the provincial government will be another content of reform.

China's supporting policies to the second batch of rural credit cooperatives involved in the experimental reform remain the same with the current reform plan except that some policies are modified and preferential tax policy is added. As from Jan 1st 2004 to the end of 2006, the collection of enterprise income tax from rural credit cooperatives in central and western China that participate the experimental reform will be suspended. The central bank will support the qualified rural credit cooperatives by giving them financial subsidy and reloan.

Notable achievements have been made in the first batch of rural credit cooperatives involved in the reform. In the first half of this year, the rural credit cooperative's loan to peasants has increased by 160 bln yuan, which greatly improved supply of funds for spring ploughing.

By People's Daily Online