China stated increase of the annual long-term foreign debt quota allocated to foreign banks to $24 billion, allowing them to bring more money into
the country as growth slows in the world's No.2 economy. The National Development and Reform Commission, the powerful Chinese planning
agency that announced the quota increase, also said it would launch a pilot project for increasing the debt quota. Due to China's capital account
restrictions, overseas banks operating have often struggled to supply their local Chinese operations with enough capital to meet demand for loans
and investment. The move could also help China cope with the slower flow of capital into its economy. Inbound foreign direct investment, a key
indicator for long-term capital inflows, shrank in February from a year earlier, marking the fourth straight fall.

AgroInvest comment: Chinese economy is expected to slow its growth in 2012 due to unfavorable global conditions. Despite the most recent boost
from emerging markets, Chinese government would like to ensure to constant inflow of capital to the country. Ukrainian agro holdings will eventually look at Chinese market as one of the export targets.
 

AgroInvest