CN banks said to ease credit loans for steel traders
Many Chinese banks reportedly have agreed to resume lending money to steel trading companies, Reuters reported.
Chinese banks has tightened credit to steel trading companies since April, before which China Banking Regulatory Commission warned the lenders to be cautious when lending money to steel traders as they were allegedly make speculation in properties and stocks by borrowing loans.
However, the restoration of credit to steel traders would only give little support for steel prices as the eased credit channels are only restricted to renowned trading companies. Bank insiders said they are still cautious on unfamiliar enterprises and will select customers carefully.
Zhou Huarui, president of Shanghai Steel Service Trade Industry Association, said certain banks have agreed to expand credit size and lower borrowing rate for steel traders. (y)
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