PBOC increases financial support for small and medium enterprises in China

Thursday, 27 February 2020 16:08:15 (GMT+3)   |   Shanghai
       

The People’s Bank of China, China’s central bank, has announced that it will increase the special quota for refinancing and rediscounting of financial institutions by RMB 500 billion ($71.2 billion), following the RMB 300 billion re-loan fund for epidemic prevention and control announced by the PBOC previously. Fi­nan­cial in­sti­tu­tions will be able to ap­ply for refi­nanc­ing and redis­count­ing at lo­cal branches of the PBOC if their small and mi­cro-en­terprise and pri­vate en­ter­prise lend­ing ra­tios are high enough.

Meanwhile, the PBOC has decided to lower the interest rate for re-lending by 0.25 percentage points to 2.5 percent to support agriculture and rural areas and small and medium-sized enterprises. This decision aims to support resumption of production and reduce financial difficulties for smaller companies. The additional amount of money for re-lending will be aimed at supporting agriculture, foreign trade and the service industries, including transportation.


Tags: China Far East 

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