Shanghai: The local Wenzhou government has decided to offer support and save the financially troubled Judger Shipbuilding, in order to stabilize the disordered credit chain in the city. A massive credit crisis has erupted in Zhejiang province since last year.
Wenzhou government has sent letters to several banks including Bank of China, Guangzhou Development Bank and China Zheshang Bank and asked them to offer favorable loan interest to Judger and allow the company to repay loans by equivalent collaterals in order to increase operating capital of the company. The banks have all expressed their support to the government’s decision.
The local government will also offer Judger financial support from its RMB1bn “emergency fund pool” which was established by the government to help major local enterprises. This year, many local governments in Zhejiang have established similar fund pools in order to deal with the serious credit crisis in the province.
“Judger might walk out of the crisis of bankruptcy through the government’s help and the restructure of its own business,” said a local economic analyst. [07/12/12]
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