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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
Bloomberg News
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.