The Breach Of SupportAgriculture Credit Contracts And Prevention Countermeasures

In the financial institutions for credit business, it often appears that the borrower fails torepay in full the period stipulated in the contract or fails to implement the contract to repayprincipal and interest, and then the guarantor would fulfill liabilities or transfer the property inadvance, for resulting in the credit risk of financial institutions, and the credit contract disputes.Those default cases mainly lie in the weak contract risk management of financial institutions,and that rural households lack of eligible collateral, asymmetric information, scope of China’s"contract law" breach of contract provisions narrowing, financial debt related legal deficiencies.For effectively preventing agriculture credit contract default risk, we should use the legislative,the law enforcement, justice, law-abiding four aspects etc, take the contract management as thecore, mainly to rely on the prevention and process control, with the remedial supplement, takethe comprehensive preventive counter measures of multilayer surface, guarantee the financialinstitutions of the creditor’s rights and legitimate interests of farmers, and ultimately theyachieve a win-win sustainable development and financial institutions operate better.