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Mengniu, Yili to receive RMB 56.13 mln in interest subsidies

Published: 31 Mar 2009 20:10:10 PST

Apr. 1, 2009 (China Knowledge) - China Mengniu Dairy Co Ltd<2319> and Inner Mongolia Yili Industrial Group Co Ltd<600887>, the flagship enterprises in China's dairy industry, will probably receive interest subsidies worth RMB 56.13 million from the Chinese government, benefiting from the central government's new policy on loan interest reduction, the Shanghai Securities News reported.

According to calculations, Mengniu has borrowed around RMB 1.58 billion from financial institutions and Yili has borrowed about RMB 2 billion, which means they can enjoy loan interest reductions of RMB 24.45 million and RMB 30.97 million, respectively.

The central government yesterday announced a new loan interest policy specially made for the dairy industry. The payment period of the loans, which enabled dairy enterprises to buy raw milk, has been extended from 3 months to 6 months.

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