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MNI BRIEF: PBOC To Use Broad & Targeted Tools For SME Credit

MNI (Singapore)
BEIJING (MNI)

The People’s Bank of China will use both overall broad and targeted monetary tools to stabilise credit growth and lower lending costs in the process of supporting small and medium-sized businesses and shoring up the economy, officials of the central bank told reporters on Thursday.

Sun Guofeng, head of the PBOC monetary policy department, said the central bank will remain a “flexible and appropriate” stance and fulfill the “overall and structural functions” of policy to support credit expansion and a “high-quality development” that include ample liquidity and targeted efforts to bolster small businesses, tech innovation and green growth. Sun noted two specific credit tools for small businesses have provided CNY336.4 billion in incentive funds to lenders as of the end of November, which leveraged CNY15.1 trillion of loan to defer and CNY9.6 trillion of credit loan in total.

Zou Lan, head of the financial market department, said measures will be taken to encourage lenders to issue special financial debt, push the repayment of account receivables and provide credit guarantees to SMEs facing a shortage of funds.

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