STORY HIGHLIGHTS


China's financial measures amid COVID-19 outbreak

CNC
Added On March 17, 2020

 China's banking sector has taken more financial measures to facilitate the resumption of production disrupted by the COVID-19 epidemic.

 
ECONOMY REPORT has the details.
 
LOW-COST LOANS ISSUED TO VIRUS-HIT SECTORS
 
China's local banks have issued 107.5 billion yuan (about 15.4 billion U.S. dollars) of low-cost loans by Friday to support the COVID-19-hit sectors.
 
Among the discounted loans, 20.5 billion yuan were agriculture-related loans, while 38.5 billion was issued to small and micro enterprises, both at average interest rates lower than the requirement of no more than 4.55 percent stipulated by the State Council.
 
The loans were issued from the 500-billion-yuan re-lending and re-discount quota provided by the People's Bank of China (PBOC), since Feb. 26 to support virus-hit businesses.
 
CREDIT SUPPORT FOR SMALL BUSINESSES
 
The Agricultural Bank of China (ABC), one of China's biggest commercial lenders, has stepped up credit support to help small and micro enterprises as well as farming companies tide over difficulties.
 
To ease the strain in cash flow, the bank has implemented a raft of moves like streamlining the procedures, reducing services fees and deferring the repayment to aid the companies that underwent severe impact of the epidemic.
 
Meanwhile, multiple steps have been rolled out to help the preparation for spring plowing and efforts have been made to enhance the efficiency of online services.
 
Special measures for hog production have been channeled to all links of the industrial chains.
 
200-BLN-YUAN LOANS ISSUED TO AID COMPANIES
 
The Agricultural Development Bank of China (ADBC), an agricultural policy bank, has issued loans and extended or adjusted loan repayment window to help companies, especially smaller ones, counter the impact from the COVID-19 epidemic.
 
The ADBC has provided 137 billion yuan (about 19.6 billion U.S. dollars) worth of loans by Saturday to help 2,650 companies resume production, among which 78 percent were small and micro enterprises.
 
It also provided 53.5 billion yuan of emergency loans by Saturday for companies involved in the fight against the COVID-19.
 
To help ease the pork price uptick amid the epidemic, the ADBC issued 10 billion yuan worth of loans so far this year in support of hog production, pushing the sector's loan balance up 39 percent year on year.