Funds for summer grain and oil purchases are guaranteed, ADBC arranges 158 billion yuan
ADBC recently issued the "Notice on Doing a Good Job in Credit Work for Summer Grain and Oil Purchases" (hereinafter referred to as the "Notice"), requiring that supporting summer grain and oil purchases be made the top priority of current work, that national grain regulation policies be effectively implemented, that the organization and leadership of grain and oil credit work be strengthened, that loan management be intensified, and that the smooth progress of summer grain purchases be guaranteed.
The "Notice" points out that banks at all levels must, in accordance with the requirements of the minimum purchase price plans for wheat and early indica rice, fully implement the national grain purchase policy and effectively strengthen the supply and management of funds for policy-based grain purchases. Provincial branches in the plan areas must pay close attention to price changes after the new grain comes onto the market, and actively facilitate the early launch and steady progress of the minimum purchase price plans for wheat and early indica rice. In accordance with the requirements of the minimum purchase price plans, they must actively cooperate with grain administrative departments and Sinograin to implement the minimum purchase price policy, strictly follow the grain purchase policies stipulated in the "2015 Implementation Plan for the Minimum Purchase Prices of Wheat and Rice," and ensure the timely and full supply of funds.
The "Notice" emphasizes that banks at all levels must actively support market-based grain purchases. On the basis of adhering to fixed customer layout points and loan qualification recognition, they must grasp two key points: for leading industrialized enterprises whose products are well suited to the market and whose credit standing is good, credit support should be given based on calculating processing costs according to their product sales prices and working backward to the break-even purchase price; for purchase and sales trading enterprises participating in market-based purchases, credit support should, in principle, be given when the volume of purchase and sales contracts is not less than 50% of the grain purchase volume.
The "Notice" requires that banks at all levels effectively strengthen and improve the management of credit for grain and oil purchases. First, continue to adhere to the closed-operation management of grain purchase funds, keep a close eye on the primary source of repayment, and ensure that the material guarantee for loans is sufficient. Second, improve the process for verifying the progress of grain purchases. For enterprises that have implemented electronic settlement for grain purchases, verify their purchase progress by examining their daily grain purchase settlement statements; for enterprises that have not implemented electronic settlement for grain purchases, examine their grain purchase settlement invoices to determine the amount of subsequent loan disbursements. Third, improve the inventory verification system. Routine inventory verification should be carried out in conjunction with the grain acceptance and inventory inspections required by the national minimum grain purchase price plans, in conjunction with the annual inventory inspections carried out by grain administrative departments, and in conjunction with special inspections organized by the head office and provincial branches, without conducting repetitive inspections. Fourth, effectively implement the "dual clearing to zero" measure for the principal and interest of grain purchase loans. Enterprises must be urged to promptly sell their grain inventories to ensure that the "dual clearing to zero" of loan principal and interest is achieved before the new grain comes onto the market.
It is learned that ADBC has already set aside 158 billion yuan in funds for summer grain and oil purchases. During the peak season for summer grain and oil purchases, service hours will be extended to meet customers' settlement needs.