Teams sent to steer firms out of trouble with loans

WENZHOU, Zhejiang - A financial taskforce has been sent to probe private lending in this eastern coastal city, as companies and their bosses continue to face ruin, government sources announced on Thursday.

Teams will look into why the majority of small and medium-sized enterprises (SMEs) are sailing into financial dire straits, with some company bosses going missing or even committing suicide due to the pressures of repaying loans to underground banks.

"We've got 48 underwriting firms to provide bank loan services to SMEs with lowered interests and commission fees, and a series of activities will be held between banks and enterprises to ease their difficulties," said Yu Zhongping, director of Wenzhou Economic and Information Commission.