China’s Central Bank Adds 100 Billion Yuan in Financial Support for Flood-Hit Areas

Dragon Media News Desk

China’s central bank has added 100 billion yuan to its agricultural and small-business relending quota to support flood control, disaster relief and post-disaster reconstruction.

The amount announced by the People’s Bank of China on Tuesday is equivalent to approximately 14.7 billion US dollars. It is expected to help financial institutions increase concessional lending to businesses and farmers in disaster-affected areas.

According to the central bank, the additional relending funds will primarily be used to address the financing needs of micro and small enterprises, individual businesses, agricultural and livestock enterprises, and farmers.

Businesses in flood-affected areas, including the Guangxi Zhuang Autonomous Region and the provinces of Hubei, Gansu and Zhejiang, will receive priority support.

The People’s Bank of China said it would direct its branches in the relevant provincial-level regions to make full use of the new relending quota. Those branches will guide local financial institutions to respond actively to loan requests from businesses and farmers affected by the disasters.

The measure is intended to provide the capital necessary to resume agricultural production, livestock farming, small industries and local businesses damaged by flooding.

The central bank also pledged to create a supportive monetary and financial environment for flood control, disaster relief and post-disaster reconstruction.