Coal-rich China province to get 30-bln-yuan loans from commercial bank

China's coal-rich province of Shanxi will get 30 billion yuan (3.75 billion U.S. dollars) worth of loans from the Fuzhou-based Industrial Bank Co., Ltd. (CIB) between 2006 and 2010.

Two thirds of the loans are expected to foster coal-related industries, power, communication and metallurgy in the central-northern province, and the remaining 10 billion yuan (1.25 billion U.S. dollars) will support its small- and medium-sized businesses and other promising local industries, according to an agreement signed between CIB and the provincial government on Friday.

The bank has extended the loans in line with the country's macro economic policies and as well as a strategic plan to foster the central regions.

"We've just taken the opportunity to offer the loans to a province that has quickened its paces of economic development, having witnessed its strong potentials as a new-type energy resource base," said CIB President Li Renjie.

The bank has also promised to provide long-term and steady financial services for the province's infrastructure projects by cementing cooperation with local financial institutions.

CIB was founded in 1988 as one of the country's first joint-stock commercial banks. With a total asset of 474 billion yuan (about 59 billion U.S. dollars), it is now one of China's 14 largest banks. Its Shanxi branch opened at the end of 2005.

Source: Xinhua