Shishi Textile Enterprises To Get Rid Of Chips Again

Fujian financial institutions will expand the scale of credit funds for the textile industry and open up a "green channel" for the textile industry credit.

On the 27 day, the provincial economic and Trade Commission issued the "opinions on promoting the sustained and healthy development of Fujian's light and textile industry". The introduction of these major measures made Shishi textile enterprises enhance their confidence in development.

According to the report, the provincial government will increase investment in budgetary funds to support credit guarantee agencies, and guarantee institutions that provide guarantee for light textile project financing with good market prospects, obvious employment and remarkable economic and social benefits. The provincial enterprises' credit guarantee institutions shall compensate the risk compensation according to the ratio of not less than 8 per cent of the annual guarantee amount.

The government will also encourage and support Fujian textile enterprises to carry out collective bond issuance work, and help a group of growing textile enterprises to finance through collective bond issuance, so as to provide stable financial support for enterprises to expand investment in medium and long-term projects.

From 2009 onwards, the province will set up an industrial pformation and upgrading key project bank loan interest rate risk margin system. The bank will issue new loans to key projects for pformation and upgrading of light textile industry. The provincial government budgetary funds will arrange a risk margin of 5 per thousand, encourage banks and other financial institutions to increase loans and support light textile projects.

In addition, the provincial budget will also give priority to the industrial upgrading of the key projects with interest subsidy from bank loans. The key points of light textile industry investment include: brand leading enterprises with strong driving force, good market prospects, great potential for growth, and obvious employment promotion; adoption of new technologies, new processes, new materials, integration with information technology, upgrading of product design capability; technological pformation with the main contents of energy saving, emission reduction, consumption reduction and safety technology; and regional industrial gradient pfer.

As a traditional industry, Shishi textile industry occupies a large proportion in economic development.

For the introduction of these major initiatives, Shishi textile industry generally welcomed.

General manager of Cai Fang, a large textile enterprise, told reporters that under the influence of the unfavorable factors of the economic climate this year, some textile enterprises in Shishi have encountered great difficulties in production and operation. Some of them have reduced production greatly, and their profit margins have declined.

Under such circumstances, textile enterprises hope that the government and relevant departments can provide timely help and give preferential loans to enterprises in terms of loans and taxes.

This year, the state has substantially raised the export tax rebate for textile products, and many initiatives such as Fujian's support for the development of light textile industry, so that Shishi textile enterprises have seen hope and enhanced their confidence in development.

"If the measures can be truly implemented, our enterprises will be able to tide over the current difficulties."

The head of another textile enterprise said.

Yang Jing: editor in charge