Translation. Region: Russian Federal
Source: People’s Republic of China in Russian – People’s Republic of China in Russian –
Source: People’s Republic of China – State Council News
BEIJING, June 5 (Xinhua) — The People’s Bank of China (PBOC, the central bank) has introduced a series of measures aimed at supporting small and medium-sized enterprises in overcoming external uncertainties and stabilizing their operations, said Ding Zhijie, director of the PBOC Institute of Financial Research.
“The moderately loose monetary policy pursued by the PBOC helps expand the volume of capital investment by financial institutions in the real economy, reduce financing costs for enterprises, especially small and medium-sized enterprises, and enhance their operating stability,” Ding Zhijie said in the latest edition of the China Economic Roundtable, a media discussion program hosted by Xinhua News Agency.
Ding Zhijie said the PBOC has provided stronger support to small and medium-sized enterprises and reduced the burden of interest on loans for them.
As of the end of April this year, the outstanding balance of inclusive loans issued to small and micro enterprises reached 34.3 trillion yuan (about 4.77 trillion U.S. dollars), up 11.9 percent year-on-year and outpacing the growth rate of other types of lending.
Businesses’ financing costs also fell. In April, the weighted average interest rate on new loans to businesses was 3.2 percent, 50 basis points lower than a year earlier.
The PBOC is prepared to further increase the refinancing quota by 300 billion yuan. The funds will be used to support the agricultural sector and small businesses.
Ding Zhijie also highlighted the role of guaranteed business start-up loans, a policy instrument introduced in 2016 to support job creation and entrepreneurship in micro and small enterprises.
The PBOC will continue to encourage banks at all levels to effectively implement this policy measure to increase financial support to stabilize employment, Ding Zhijie said. -0-