May 27, 2009. Five government departments including the People's Bank of China and the Forestry Bureau issued a document outlining better financial provision for China's forestry industry

Boost to forestry industry as China issues new loan guidelines

May 27, 2009. /Lesprom Network/. Five government departments including the People's Bank of China and the Forestry Bureau issued a document outlining better financial provision for China's forestry industry, as Shanghai Securities News informed Lesprom Network. Forestry loan terms will be extended to as long as 10 years, and the interest rates will stay below 1.3 times the benchmark rate. Presently the general term of forestry loans to rural residents using their land for growing trees is one year, and lending to forestry enterprises is limited to five years. Given that trees take a rather longer period of time and yeild a return, lenders are being encourages to come up with longer loan periods. China's forestry industrial output for 2008 was RMB 1.33 trillion ($195 billion). Loans for forestry reached RMB 11.7 billion ($1.7 billion), an increase of 41.3% on 2007. Yunnan Jinggu Forestry Co. surged to the 10% trading cap. Shenzhen International Enterprise Co. rose 8.28%. Sichuan Shengda Forestry Industry Co. advanced 3.99%. Fujian Yongan Forestry (Group) Joint-Stock Co., added 3.14%. China Grand Forestry Green Resource Group added 4.40%.