news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

[As of the end of June 2024, the refinancing quota for agriculture was 810 billion yuan, with a balance of 677.1 billion yuan. Dong Ximiao, chief researcher at China UnionPay, believes that the practice of increasing the refinancing quota for specific regions is relatively rare, which further highlights the function and role of the structural monetary policy tool of "precision drip irrigation".]

On August 13, the People's Bank of China decided to increase the re-lending quota of 100 billion yuan to support agriculture and small businesses in 12 provinces (autonomous regions and municipalities), including Chongqing, Fujian, Guangdong, Guangxi, Henan, Heilongjiang, Hunan, Jilin, Jiangxi, Liaoning, Shaanxi and Sichuan, to support flood prevention, disaster relief and post-disaster reconstruction in severely affected areas, and to increase credit support for business entities in disaster-stricken areas, especially small and micro enterprises, individual industrial and commercial households, as well as agricultural and breeding enterprises and farmers.

Re-loans for agriculture and small businesses are both structural monetary policy tools, mainly issued to specific financial institutions such as rural financial institutions. At present, the one-year re-loan rate for agriculture and small businesses is 1.75%, which is significantly lower than the one-year MLF operating rate of 2.3%.

As of the end of June 2024, the re-lending quota for supporting agriculture is 810 billion yuan, with a balance of 677.1 billion yuan, and the recipients are rural commercial banks, rural cooperative banks, rural credit cooperatives, and village banks; the re-lending quota for supporting small businesses is 1.8 trillion yuan, with a balance of 1.6942 trillion yuan, and the recipients are city commercial banks, rural commercial banks, rural cooperative banks, village banks, and private banks.

The central bank said that in the next step, the People's Bank of China will urge its branches in relevant provinces (autonomous regions and municipalities) to make good use of the newly added re-lending quotas, guide financial institutions to accurately match the financing needs of disaster relief and post-disaster reconstruction, simplify procedures, speed up approvals, ensure the funding needs of disaster-stricken enterprises, and help them resume production.