In recent years, the State has introduced numerous mechanisms and policies to foster a favourable business environment and support the sustainable growth of cooperatives. Despite notable achievements, however, cooperatives continue to face limitations and challenges, one of the most pressing being restricted access to credit.
People’s credit funds, in particular, represent a cooperative model within the financial sector, operating on the principles of mutual assistance, autonomy and community responsibility. Unlike commercial credit institutions, these funds are member-focused, closely connected to local communities, and directly serve the legitimate production, business and livelihood needs of residents.
The Strategy for Collective Economy and Cooperative Development for 2021–2030 identifies these funds as a key component in promoting finance for the collective economy and supporting co-operatives to expand commodity production.
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