PBOC increases re-lending quota to support flood-affected areas

8/14/2024 8:55:29 AM

(MENAFN) The People's bank of China has announced a substantial increase in its re-lending quota aimed at assisting the agricultural sector and small businesses in 12 provincial-level regions severely impacted by recent floods. The central bank will augment the re-lending quota by 100 billion yuan, approximately USD13.99 billion, to support eligible enterprises in the flood-affected areas, which include Chongqing, Fujian, Guangdong, Guangxi, Henan, Heilongjiang, Hunan, Jilin, Jiangxi, Liaoning, Shaanxi, and Sichuan. This move is part of a broader effort to help these regions recover from the devastating effects of the floods.

Re-lending is a monetary policy tool used by the central bank to provide loans to financial institutions at specified interest rates. By adjusting the monetary base through such programs, the central bank aims to achieve specific credit supply objectives and support economic stability. The People's Bank of China has emphasized the need for financial institutions to streamline their procedures and expedite the approval processes for these loans, ensuring that the financing needs of affected companies are addressed promptly. The goal is to facilitate the resumption of production and help these businesses recover and rebuild in the wake of the disaster.

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