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China Offers US$520 Million in Loans to Students in 2004

China offered an estimated 4.3 billion yuan (US$520 million) in loans to about 800,000 college students in the past year, the Ministry of Finance said Friday.

 

According to a press release issued by the ministry, China put in place a new mechanism designed to provide loans to college students in economic difficulty, making it easier for those in need to get loans for extended terms.

 

Poor students account for one fifth of college students in China, the ministry said.

 

Under the new mechanism made public last April, the central government selected banks to offer the loans through public bidding. The system uses an improved mechanism of government subsidy and risk control. 

 

This year, the ministry said, Chinese government departments at various levels are expected to provide 1.35 billion yuan (US$163 million) in loan subsidies and risk compensation funds to government loans to college students in need for 2004-2005 academic year.

 

The ministry said the governments will provide more funding so that college students in dire need will have access to loans.   

(Xinhua News Agency January 7, 2005)

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