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     BEIJING (MNI) - The People's Bank of China will take measures to provide
ample and cheap capital when financial markets open on Feb. 3, including the
provision of CNY300 billion of low-cost refinancing funds to major nationwide
and local banks affected by the coronavirus outbreak, Deputy Governor Pan
Gongsheng said in an interview with the bank's newspaper Financial News on
     Pan spoke before the central bank said on Sunday it would inject CNY1.2
trillion on Monday through reverse repo operations and that overall market
liquidity is CNY900 billion higher than at the same time last year. The net
injection will total CNY150 billion, according to MNI calculations.
     Here are other key points from the PBOC statement and Pan's interview:
     - The central bank will provide liquidity through tools such as open market
operations, standing lending facilities, refinancing and rediscounting, in order
to keep money market rates stable. It will relax January reserve requirements
for affected banks.
     - The PBOC will provide CNY300 billion in cheap refinancing funds to
financial institutions. Banks receiving the funds will be required to lend to
producers of medical and other key goods at preferential rates.
     - The central bank will enhance countercyclical policy, "appropriately" cut
loan rates and provide medium- and long-term financing to help businesses
weather the epidemic.
     - Companies struggling to repay loans due to the outbreak will be allowed
extensions or renewals.
     - Banks must not withhold loans to small and micro enterprises in affected
sectors such as wholesale, retail, accommodation and catering, logistics and
transportation, or culture and tourism.
     - The PBOC will closely monitor market liquidity, provide information of
planned measures in a timely manner and reinforce policy guidance.
     - Overseas borrowing overseas can be lifted for companies involved in
combatting the disease outbreak.
     - Individuals' normal demand for foreign exchange will be protected, while
personal FX transactions should be conducted through online banking.
--MNI Beijing Bureau; +86 10 8532 5998; email:
--MNI Beijing Bureau; +86 (10) 8532-5998; email:
--MNI Beijing Bureau; +86 (10) 8532 5998; email:
--MNI London Bureau; +44 203 865 3829; email:
[TOPICS: MMQPB$,M$A$$$,M$Q$$$,MT$$$$,MGQ$$$]

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