China to help small businesses access credit

China to help small businesses access credit

China said Wednesday it will make it easier for smaller businesses to get bank credit,Dolphins jerseys wholesale amid growing concern at the number of cash-strapped companies turning to private lenders for financing.

Independent business owners in China have long complained that banks ignore their loan applications, preferring to lend to large state-controlled enterprises whose debts are implicitly guaranteed by the government.

A growing number of private companies are resorting to the informal lending market where they pay as much as 70 percent interest on loans -- more than 10 times the bank rate.

The issue has gained prominence recently after at least one entrepreneur killed himself and dozens of others disappeared in the eastern city of Wenzhou after borrowing money from private lenders at very high interest rates.

Chinese Premier Wen Jiabao last week visited Wenzhou -- which gained nationwide fame in the 1980s for its free-wheeling entrepreneurs -- and urged stronger financial support for smaller businesses.

The package of measures announced by the State Council, or cabinet,Cheap moncler jackets on Wednesday was intended to increase credit support, broaden financing channels and offer tax breaks for small enterprises, according to a statement.

The State Council also pledged to lower the deposit reserve ratio for small financial institutions which would -- in theory -- free up more money for them to lend to private companies.China nfl jerseys wholesale

Tighter lending restrictions introduced in the past 12 months to stem a flood of liquidity in the economy and rein in inflation were also exacerbating the problem faced by small companies,,wholesale POLO Ralph Lauren SERIES, Credit Suisse warned recently.

It estimated that the informal lending market could be worth four trillion yuan (about $629 billion) and growing 50 percent year-on-year, so that it "threatened financial stability" in China.,Nike shox shoes,

The euro will survive (That's not a typo)

The euro will survive (That's not a typo)

The euro may be in intensive care right now. But even if Greece defaults, it's not time to start reading the currency its last rites just yet.

For all the talk about how bad the sovereign debt crisis in Europe is, you'd think that the euro would be completely tanking against most other currencies. But as the chart at the top of this page shows, it's not the case.

While the euro has weakened recently,Christian Louboutin shoes it is still actually up slightly against the dollar and British pound this year. The euro may not be able to hold on to those gains much longer if Greece defaults, but it probably won't collapse either.

Experts said that the euro has a solid chance of making it through this crisis, albeit in a possibly modified (i.e.Moncler Jacket no Greece) form, simply because "strong" eurozone nations know that they are still better off with a unified currency for trade reasons.

Germany, France and The Netherlands, for example, could have a more difficult time exporting goods if they went back to the days of the Deutsche mark, franc and guilder.

A benefit of having a currency pegged to the economies of various nations is that the weaker ones balance out the healthier ones so you are left with a currency that shouldn't get too overheated. That's exactly the problem Switzerland is now facing with the Swiss franc.

"I think the members of the EU want the euro to survive. Whether or not Greece is part of the euro though, that's about a 50-50 proposition at this point,,Moncler jackets," said Greg Michalowski, chief currency analyst with FXDD, a foreign exchange broker In New York.

Of course,cartoon wholesale the flip side to the unified currency argument is that it only takes problems in one member nation to spark a full-blown panic.