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Bank of Beijing promises Thursday to increase 30 billion yuan (US$3.7 billion) loans to the small and medium-sized enterprises (SME) in the next three years.

 

The bank source said the decision was made in accordance with a cooperation agreement on supporting SME development signed by Beijing municipal development and reform commission on Wednesday.

 

The increase will chiefly go to the short-term loans.

 

In line with the agreement, Beijing municipal development and reform commission will establish an financing service platform to enlarge the financing channels for the SMEs.

 

All the SMEs registered at the municipal industrial and commercial administrative department running for more than one year can apply for the loan via Beijing SME website www.smebj.gov.cn.

 

The commission will also organize Bank of Beijing and some guarantor bodies to provide services including consultation and training to the small and medium enterprises which find it difficult to acquire the loans.

 

Beijing has 698,000 small and medium-sized enterprises by the end of 2004, creating jobs for 75.8 percent of the city's population and contributed 50.8 percent of the gross output value last year.

 

(Xinhua News Agency December 30, 2005)