Agricultural Bank denies $50 bn bail-out: Report
Agricultural Bank of China, the weakest of the country's big four commercial banks, denied it is to receive up to 50 billion dollars in government bail-out funds.
By Agencies |
SHANGHAI: Agricultural Bank of China, the weakest of the country's big four commercial banks, denied it is to receive up to 50 billion dollars in government bail-out funds, state media reported on Sunday.
The lender's spokesman Zhou Qingyu refuted recent media reports that the government investment fund Huijin would shore-up the lender's ailing balance sheet with a capital injection, Xinhua news reported.
"The statement is not accurate, and it misleads readers," Zhou was quoted as saying.
According to an earlier state press report proposals on restructuring the debt-laden bank, including the capital injection, would be discussed during the the annual parliamentary session in March.
Funding could come by the end of April, according to report by the Oriental Morning Post last month.
Officials with Agricultural Bank were not immediately available for comment on Sunday's report.
Agricultural is the last of the big four state lenders awaiting a financial rescue package.
The bank, whose indiscriminate lending in support of the agricultural sector has made it technically insolvent, is in need of funding if it is to become solvent, and, like its other "big four" peers, list on the stock market.
The exact number of bad debts on Agricultural's books is unknown, but independent analysts have estimated the bank carries at least 100 billion dollars in unrecoverable loans.
Agricultural Bank president Xiang Junbo has said that the lender hopes to list shares by 2010.
The lender's spokesman Zhou Qingyu refuted recent media reports that the government investment fund Huijin would shore-up the lender's ailing balance sheet with a capital injection, Xinhua news reported.
"The statement is not accurate, and it misleads readers," Zhou was quoted as saying.
According to an earlier state press report proposals on restructuring the debt-laden bank, including the capital injection, would be discussed during the the annual parliamentary session in March.
Funding could come by the end of April, according to report by the Oriental Morning Post last month.
Officials with Agricultural Bank were not immediately available for comment on Sunday's report.
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Agricultural is the last of the big four state lenders awaiting a financial rescue package.
The bank, whose indiscriminate lending in support of the agricultural sector has made it technically insolvent, is in need of funding if it is to become solvent, and, like its other "big four" peers, list on the stock market.
The exact number of bad debts on Agricultural's books is unknown, but independent analysts have estimated the bank carries at least 100 billion dollars in unrecoverable loans.
Agricultural Bank president Xiang Junbo has said that the lender hopes to list shares by 2010.
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