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        CHINA / National

        Colossal overdraft for officials fuels suspicions of corruption
        By Echo Shan (chinadaily.com.cn)
        Updated: 2006-03-30 14:39

        High-level senior officials have been targeted for a new credit card issued by Minsheng Bank that carries a line of credit of three million yuan, 60 times the current maximum prescribed by regulations, reports China Youth Daily.

        With the notable inclusion of government officials, who tend to have relatively average paychecks, the economically savvy card insurer has targeted wealthy business moguls and star entertainers on its potential customer list.

        The Regulations and Management on Banking Operation currently in use stipulates the maximum overdraft amount be fifty thousand yuan per month.

        When asked about the size of the new overdraft, Minsheng bank said, "A special deliberation by the administration was undertaken and we got a green light. Three million in overdraft is totally legal."

        Central bank officials have previously said that comprehensive information regarding the regulations and overdraft maximums will be made available to each credit card issuer.

        This closed-door policy would likely exclude average applicants, as the bank wants to maintain an elite and quality legion of customers.

        It's not the bank's snobbery that has ignited superheated criticisms among across the online community but the official recruitment of their target card users.

        "How can a ministerial-level official making no more than five thousand yuan on the pay roll per month afford such a colossal sum?" queried an online surfer on Sina.com, "It's an open endorsement and a path to corruption."

        Some say the bank is just confronting the reality of the situation. Propelled by profit incentives, it's justified in a market economy with socialist characteristics to make such kinds of overdrafts available. They say the same of the "highly involved" socialist leaders.

        In a slice of razor wit, one net writer lashed out at the bank asking, "how come our respectable officials bother to pay for what they want?"

        Public servants in China have long been under the spotlight and kind of have become an easy target for an irritated public.

        Civil servant earnings are comprised of three parts: the duty wage, the level wage, and the basic wage. All three parts add up to no more than 3,000 yuan for a vice-minister-level official, a far cry from the ultra-handsome overdraft of three million yuan a month.

        In defense of their "Diamond Credit Card" service, the bank said the high entrance requirements have been set to maintain a high-end customer group. Questions concerning the inclusion of senior officials in the plan were met with "no comment."

        A credible source with Minsheng Bank revealed that no government officials have yet made the ten-member list so far.

         
         

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