Research On Micro-lending For Laid-off Workers And Countermeasures In Hunan Province

In order to solve the problem of the reemployment of laid-off workers in state-owned enterprises, the Party Central Committee and the State Council have applied positive employment policy since September 2002. The policy of micro-lending for laid-off is one of these important policies. The policy targets for social stability through policy credit operation. The laid-off workers can obtain micro-lending from financial organizations with the help of government guarantee policy so that they can start their undertakings independently.It has got some good result in Hunan Province since 2003 when this policy was put into practice. Some laid-off workers get their new jobs. It is good for the stability of economic society. Until the end of 2006, there has been 37054 laid-off workers obtained 490 approximately million RMB, 58 thousand laid-off workers reemployed. Meanwhile, the preferential policy is also facing two fundamental problems. Firstly, between the aim of these financial organizations, that is pursuing profits, and social target of this policy, there are some conflicts to some extents. Secondly, there are still doubts on laid-off workers' ability of paying debt.The theme of this article is the micro-lending and its countermeasures in Hunan Province, the analysis of the practice of this policy and the problems in Hunan Province, the analysis of the reasons of obstacles to this policy. For example, judging from the economic point of view, commercial banks are reluctant to the micro-lending for laid-off workers as a key analysis. Meanwhile, in view of the current situation and problems faced, the file studies and pondered how further consummates the policy of micro-lending for laid-off workers in Hunan Province, for example, positive incentive for the commercial banks to improve, establishment of the restraint and incentive mechanism of the borrower's regular repayment, to play the pole of the community labor security platform. Finally, based on the actual situation of Changsha city in Hunan, the file gives an empirical analysis.