Central China’s Sichuan province has just submitted a new financial inclusion plan to the People’s Bank of China (PBOC) that could see nearly 950 million yuan (USD$134.21 million) in interest free funds provided to local micro-and-small enterprises (MSE).
Sources from the Chengdu office of PBOC told National Business Daily on 24 June that Sichuan has already submitted its first “financial inclusion micro-and-small enterprise credit loan support plan” (普惠小微企业信用贷款支持计划申报) to the Chinese central bank.
The plan will involve 65 legal person financial institutions in the province and a loan principal of 2.37 billion yuan.
The source estimate this will permit the application for 948 million yuan in zero interest policy funds with PBOC, for the provision to as many as 11,000 borrowers in labour-intensive sectors such as agriculture and manufacturing.
PBOC sources said that the move is part of efforts to ensure that the impact of monetary policy tools deployed by the central bank is felt by the real economy.