[9:59:52]Chairman’s Speech at the Press Conference on the Achievements of the Reform and Development of Shandong Province’s Rural Credit Cooperatives

[10:00:21]June 8, 2007,Nanjiao Hotel

[10:04:02]Zhang Dekuan,Chairman’s Speech at the Press Conference,Deputy Secretary-general of Shandong Provincial Government and Spokesman of the Provincial Government

[10:07:42]Zhang Dekuan:Ladies and gentlemen, and friends from the media,Good morning!

[10:10:29]Zhang Dekuan:Today, the Provincial Government holds two press conferences here. One is on the achievements of the reform and development of our province’s rural credit cooperatives this morning and the other is on Shandong Province’s saving energy and reducing emission of pollutants this afternoon. We welcome journalists’ attendance and request your punctual presence at this afternoon’s conference.

[10:11:02]Zhang Dekuan:In order to give a good coverage to the positive achievements of the reform and development of our province’s rural credit cooperatives, we today have invited Mr Song Wenxuan, chairman of the Council of Shandong Provincial Rural Credit Cooperatives Union and secretary of the Party Committee, and Mr Zhang Jianmin, vice-chairman and director, to give us a briefing on the reform and development of our province’s rural credit cooperatives and answer journalists’ questions.

[10:11:03]Zhang Dekuan:Present at the conference are journalists from the central media, Hong Kong media based in Shandong, the provincial-level media, and the major media in Jinan.

[10:11:05]Zhang Dekuan:First, we have Mr Song Wenxuan, chairman of the Council of Shandong Provincial Rural Credit Cooperatives Union, give a briefing on the achievements of the reform and development of our province’s rural credit cooperatives.

[10:11:25]Song Wenxuan:Friends from the media,Good morning!

[10:13:05]Song Wenxuan:In the latter half of 2003, the State Council decided to deepen the pilot study of the reform of rural credit cooperatives by transferring them to the Provincial Government’s management. In the past three years and more, the pilot study of the reform has made major achievements. I will give a briefing in the following.

[10:13:15]Song Wenxuan:In August, 2003, the State Council made the decision to deepen the pilot study of the reform of rural credit cooperatives and our province became one of the eight pilot provinces. The general requirement of the pilot study of reform is to clarify property-right relationships, strengthen binding mechanisms, increase service function, give proper support by the state, and take up responsibility by the local governments.

[10:13:47]Song Wenxuan:After more than three years’ effort, our province has made important achievements in deepening reform, and realized the predetermined major goals, and the level of management of the rural credit cooperatives has been obviously raised. 

[10:13:58]Song Wenxuan:Firstly, the reform of the managerial system has been successfully made. The Provincial Government has taken up the overall managerial responsibility for rural credit cooperatives, and established Shandong Provincial Rural Credit Cooperatives Union, which performs the particular functions of managing, guiding, coordinating and serving the whole province’s rural credit cooperatives.

[10:15:32]Song Wenxuan:Secondly, the reform of county-level corporations has been pushing forward steadily and in a deep-going way. In accordance with the principle of "suiting measures to local conditions and guiding according to classes’,proceeding from the actual conditions, our province’s reform of property-right system and organizational form of county-level rural credit cooperatives has been pushing forward steadily.

[10:15:43]Song Wenxuan:Thirdly, supporting policies have been implemented gradually. Our province’s rural credit cooperatives have issued special Central Bank bills worth 13.186 billion yuan by permission. With the Provincial Government’s attention and support, 110 rural credit cooperatives, after active effort, have cashed 10.59 billion yuan by permission, accounting for 82% of the rural credit cooperatives and 80% of the amount and ranking first nationally in terms of the number of rural credit cooperatives and amount. 

[10:17:41]Song Wenxuan:Fourthly, the funds resources have increased obviously. By the end of May, the balance of various deposits amounts to 384.5 billion yuan, an increase of 177.3 billion yuan as against the end of 2003, and an increase of 86%. The balance of various loans amounts to 306.9 billion yuan, an increase of 132.9 billion yuan as against the end of 2003, and an increase of 76%.

[10:18:02]Song Wenxuan:Fifthly, the degree of economic and social contribution has been raised steadily. Centering around the three rural issues and the requirement of county-areas’ economic development, our provinces’rural credit cooperatives have actively increased credit input, optimized the credit directions, speeded up the innovation of mechanisms, products and services, perfected service functions, raised service levels, powerfully supported the construction of the new countryside and the whole province’s economic and social development, and played a quite good role of main force in rural finance.

[10:18:07]Song Wenxuan:Sixthly, the business benefits have increased to a great degree. Profits were made for the first time in 2003’s unified settlement since 1996. A book profit of 3.4 billion yuan was realized in 2006, a 33-time increase as against 2003.

[10:20:30]Song Wenxuan:Seventhly, the employees’ qualities and public image have been improved obviously. All the rural credit cooperatives have adhered to the human-oriented principle, attached much importance to the construction of the employees as a whole, set up an effective mechanism of personnel employment, training, appointment and management, and enhanced the employees’ qualities.

[10:20:39]Song Wenxuan:In the beginning of this year, the fourth congress of the union members determined this year’s major goals: to increase various deposits by 51 billion yuan, an increase of 15% with a balance of 394 billion yuan, to increase the loans by 43 billion yuan, an increase of 16% with a balance of more than 313 billion yuan, and to realize a book profit of 3.9 billion yuan.

[10:23:39]Song Wenxuan:The conference on the province’s financial work held recently proposed that the development level of the rural credit cooperatives should be raised in order to meet the requirements of the changing situation. That created a new opportunity for us to consolidate the reform achievements, to further deepen reform, and to push forward development. It is sincerely hoped that all circles of society, especially friends from the media, will continue to pay attention to and support the rural credit cooperatives and push forward the reform and development of the rural credit cooperatives.

[10:35:57]Song Wenxuan:Thank you.

[10:36:19]Zhang Dekuan:Now it is the time for your questions. Please make known what news units you are from and make your questions concise and clear.

[10:47:45]Zhang Dekuan:To deepen the reform of rural credit cooperatives and improve rural financial service not only concern the steady and healthy development of rural credit cooperatives but also concern the overall situation of agricultural development, the increase of farmers'' income and rural stability.

[10:47:48]Zhang Dekuan:Friends from all media are expected to give attention and support to the reform and development of our province’s rural credit cooperatives and jointly push the job forward to make greater achievements.

[10:47:53]Zhang Dekuan:Today’s conference is over. Thank you.