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PBOC Unveils $60 Billion Plan to Aid Small Business Credit

  • Central bank to use 400 billion yuan from re-lending program
  • Small firms also get loan repayment holiday till March 2021
Updated on

China’s central bank said it will temporarily purchase loans made to small businesses from some local banks, a new policy to boost the supply of lending to the real economy.

The plan will use 400 billion yuan ($56 billion) from a separate program to buy 40% of unsecured loans to small and medium-sized firms with maturities of at least six months made between Mar. 1 and Dec. 31, 2020, the People’s Bank of China said Monday.