China’s central bank said on Sunday it will extend the use of three lending tools to enhance support for targeted sectors of the economy.
The People’s Bank of China will roll over a lending tool for encouraging carbon emission reduction to the end of next year, and extend a relending tool for advocating the clean use of coal to the end of this year, the bank said in a statement on its website.
The central bank will also roll over a relending tool for the transport and logistics sector to June this year, it said. Several foreign financial institutions will be added to the scope of the carbon reduction tool, the central bank said.
The move to extend the lending tools will aid “precisely and effectively implement the prudent monetary policy, guide financial institutions to increase support for green development and other areas”, the central bank said.
Since 2021, when the world’s second-biggest economy was first shaken by the coronavirus, the central bank has rolled over its arsenal of structural policy tools, including relending and rediscount facilities and other low-cost loans.
Outstanding loans made via structural tools added up to nearly 6.45 trillion yuan ($950.98 billion) at the end of last year, according to central bank data.
The central bank is ready to step up targeted support for struggling sectors through its structural policy tools, according to policy sources and analysts.
($1 = 6.7825 Chinese yuan renminbi)