China Steps Up Loan Relief, Delays Risk Exposure to Help Economy
- Banks delay repayments on 1.5 trillion yuan of loans this year
- Risks from forbearance may be exposed this or next year
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Chinese banks have offered relief on 3.9 trillion yuan ($551 billion) of loans since the outbreak of the coronavirus pandemic to help struggling small businesses and bolster an economy facing its worst slump in four decades.
Lenders have postponed taking principal repayments on 1.44 trillion yuan in loans to almost 800,000 small businesses and pushed back 65.4 billion yuan in interest payments as of May 31, according to a China Banking and Insurance Regulatory Commission official who asked not be named citing internal policy. Banks also rolled over 2.4 trillion yuan in financing to small businesses.