One of China’s big three policy banks has stepped up lending in the first half of 2020 to help the economy weather the impacts of the COVID-19 pandemic.
According to state media China Development Bank (CDB) issued 1.87 trillion yuan (approx. USD$267.05 billion) in both domestic and foreign currency loans in the first half of the year.
CDB’s domestic renminbi loan balance rose by 682.4 billion yuan, including 29.5 billion yuan in pandemic-prevention emergency loans, and 438.5 billion yuan in loans used to support the resumption of production.
CDB also made 1.03 trillion yuan in “Two New’s and the One Important” (两新一重) loans; 147.3 billion yuan in medium and long-term loans to the manufacturing sector, and 273.4 billion yuan in Yangtze River protection and green development loans.
A further 196.1 billion yuan in poverty alleviation loans were issued; 93 billion yuan in new micro and small-enterprise transfer loans, and USD$39.6 billion in foreign currency loans to support key foreign trade and investment enterprises and key Belt and Road projects.
CBD highlighted lending support for the Hubei region, as well as aviation and highway sectors in the first half, with an expansion of loan extensions.
The bank formulated policies for six special interest rate discounts, while interest rates for new loans declined markedly compared to last year.
CDB said that in future it would “continue to service high-quality economic growth,” as well as “strictly prevent empty-transfer arbitrage of loan funds.”