1999 after the state banned foundations, it was not a simple ban, but a rectification of relevant financial institutions. At that time, the rural cooperative foundations in towns and villages all carried out the transformation and reorganization of township banks. According to the foundation you saved at that time, which bank do you want to reorganize? Generally, it is a rural commercial bank named after a local place name. You can handle business at the counter with relevant certificates, shareholder certificates and other relevant documents. Therefore, the monthly interest rate of 1999 1 needs to be checked in the bank.
1. Reasons for cancellation of foundations established in towns and villages across the country in that year.
1) It came into being in the mid-1980s after the collapse of people's communes caused by household contract for joint production, and it was developed throughout the country because it played an important role in rural financial reform and economic development in the early 1980s and 1990s. Not only do local governments take this as an important means of financing for the development of local economy to strengthen intervention and control, but the central government also constantly encourages it from 1984- 1993.
2) In the mid-1990s, China liberalized three speculative economic fields: securities, futures and real estate. At the same time, due to the high scarcity of funds nationwide, the market interest rate is very high. Rural cooperative foundations (mainly above the township level) also have similar problems with other financial institutions, but they are not more serious. So, just when 1997 reached its peak, the superior made a decision to clean up and close the merged rural cooperative foundation. After 1998-99, although the problems were mainly at the township level, village-level foundations also ended in bankruptcy.
3) The decision to rectify and close the rural cooperative foundation was quickly implemented under the unified deployment of the central authorities. At the same time, it has also caused new problems: on the one hand, when the administrative closure of the foundation suddenly interrupts credit activities, which will inevitably lead to large-scale bad debts, the superior has no risk reserve, and even if all localities borrow money from the central government, they can't meet hundreds of billions of redemption needs; As a result, a large number of debts of grass-roots rural government organizations are finally transformed into the burden of farmers and township enterprises, which is actually similar to the credit bankruptcy of some local governments. On the other hand, the net outflow of rural funds is more serious, agricultural capital elements are extremely scarce, and grassroots private lending and usury have reappeared in a large area.