China boosts lending to flood-hit regions

The People’s Bank of China (PBC) has announced on Wednesday a significant increase in relending quotas to support the agricultural sector and small enterprises in 12 flood-stricken provinces.

The central bank will allocate an additional 100 billion yuan ($13.99 billion) in relending funds to Chongqing, Fujian, Guangdong, Guangxi, Henan, Heilongjiang, Hunan, Jilin, Jiangxi, Liaoning, Shaanxi, and Sichuan provinces.

Relending is a monetary policy tool where the central bank provides loans to financial institutions at a specific interest rate, which in turn helps adjust the overall credit supply.

The PBC urged financial institutions to streamline procedures and speed up approval processes to meet the funding requirements of affected businesses. They should also help these businesses resume production.

Attribution: WAM

Subediting: Y.Yasser