The Study On The Problems Of Direct Subsidy Funds Guarantee Loan

Direct subsidy funds guarantee loan is one kind of loans which Jilin Province takeslead in introducing and spreading within the whole province. With the farmers ofgrowing crops who legally enjoy financial subsidy funds from the country or fromdifferent levels of governments as the extending target, it is guaranteed with the twosubsidy funds of the family food direct subsidy and agricultural materials general directsubsidy. Direct subsidy funds guarantee loan is an innovation of guarantee loans byfarmers, which is guaranteed with food direct subsidy and agricultural material generalsubsidy. It properly enlarges the credit quota to10times direct subsidy funds of a year atmost, and can solve farmers’ problem of lacking effective loan guarantee. Therefore, ithas the very importance of optimizing the structure and feasibly controlling the risks offarmers’ loans.To extending credits to farmers with the direct subsidy fund as the guarantee andexploring to solve the problem of farmers loans’ difficulty to apply the loan, the centraltask is to prevent and cope with the loan risks of banks while increasing farmers’ cropoutput and income. Only if like this, the social benefiting policy can be lasted. The paperdeals with the performance analysis on the direct subsidy funds guarantee loan, findingout the main barrier of developing it and has much real significance to preventing andcoping with the loans risks of banks. With an analysis of status quo of the direct subsidyguarantee loans’ size, increasing speed, regional distribution and calling in, the authorput forward the idea of perfecting the system which has much real significance onenlarging the size of direct subsidy funds guarantee loan and promoting farmers’ cropoutput and increasing income.By scientifically analyzing the current direct subsidy policy, the managing system ofguarantee loan and managing methods of the direct subsidy guarantee loans, the authorfinds out the existing problems in actual procedure on the basis of a field survey on thestatus quo of developing direct subsidy funds guarantee loan in Jilin Province, and try toseek the methods and measures of solving these problems while providing feasiblesuggestion of further perfecting the system of direct subsidy funds guarantee loan in JilinProvince.The paper includes five parts. The first chapter simply introduces the aim, significance, study method and of choosing the topic as well as the current study situation of the ruralcredit in China and overseas. The second chapter gives us a summary of the relevanttheory, concepts, running patterns and the main achievements of the direct subsidy fundguarantee loan. The third chapter provides an analysis on the current running situationand performance of the direct subsidy fund guarantee loan. Based on gatheringsubstantial data, the part deals with a systematic analysis on the indexes of the loan’sstock, increment, growth, recovery rate and also makes an evaluation on the performanceof farmers’ adopting loan. The fourth chapter deals with the author’s field survey resultsof many regions in Jilin Province and hence carries out an analysis on the existingproblems in the process of developing the direct subsidy fund guarantee loan in JilinProvince from the point view of policies and systems and credit operating. The lastchapter put forward some ideas and advice on how to perfect the system and benefit itssustainable development with a detailed analysis on the problems of restricting thesystem’s sustainable development.To arouse the rural dead capital and display the leverage effect of financial subsidyfund, it is significant to provide credit support for farmer with the direct subsidy fund asthe guarantee. Especially for Jilin Province which takes agriculture as the main part,constructing the credit support system covering farmers not only concerns the farmers’personal benefit and rapid growth of rural economy, but also fostering rural financialmarket and the sustainable development of rural financial organizations. By continuallyperfecting the relevant system design, the direct subsidy fund guarantee loan will ownmore developing potential and market space.