PBOC To Issue Low-Cost Loans For Carbon Emission Cuts: Governor

The People’s Bank of China will issue a first batch of low-cost loans to financial institutions by the end of this year, to promote carbon emission reduction and clean coal use, Xinhua News Agency reported citing PBOC Governor Yi Gang. The PBOC can increase the quota for refinancing to small and micro enterprises as necessary, and the central bank will encourage banks to increase SME loans by offering 1% of newly added loans, the newspaper said. In terms of the Evergrande risks, it should be deal with market-based methods, clarify the responsibilities of shareholders and local governments, so to prudently resolve risks, Xinhua cited Yi as saying, noting that China’s financial risks are convergent and controllable.