MNI POLICY: China Policy Bank Ups Loans to Exporters By Half

     BEIJING (MNI) - One of China's leading policy banks increased to export

businesses by half over last year, helping companies over the worst impacts of

the global slowdown, interrupted supply chains and the dip in domestic demand as

the pandemic spread in the first half of the year, a leading bank official said

Thursday.

     The Export and Import Bank of China (Exim), one of three big China policy

banks, boosted loans for export firms to CNY904.7 billion in H1, an increase of

around 50% on last year, Wu Fulin, president of The Export and Import Bank of

China (Exim), told a press conference held by China's Banking and Insurance

Regulatory Commission.

     The bank will also "actively negotiate" with developing countries, offering

postponements on loan payments to help promote the Belt and Road Initiative, he

added.

     Industrial and Commercial Bank of China (ICBC), the biggest bank in China,

disclosed that it allowed 31,700 small firms to postpone loan payments totalling

CNY37.7 billion. New loans to smaller companies, or inclusive financing loans,

stood at CNY168.4 billion in the H1, up 35.7% from last year, with interest

rates at 4.15%, 37 bps lower from last year, according to Gu Shu, the president

of ICBC.

     "If taking fee cuts (offered by the bank) into account, the overall

financing costs of small and micro firms was lowered by 87 basis points (from

last year)," Gu added.

     China's Premier Li Keqiang has said financial institutions in China were

required to cut profits, helping the real economy to the tune of CNY1.5 trillion

this year.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

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