“The moderately loose monetary policy adopted by the People’s Bank of China (PBOC) will expand the funding available to the actual economy, reduce the cost of funding for businesses, especially small and medium-sized enterprises, and increase operational stability.”
Ding said the PBOC has taken steps to strengthen small businesses by providing stronger credit support and eases the burden of profits.
By the end of April, unpaid comprehensive loans issued to micro and small businesses increased 11.9% year-on-year, reaching 34.3 trillion yuan (approximately USD 4.77 trillion).
Financing costs for companies are also falling. In April, the weighted average interest rate on newly issued corporate loans was 3.2%, down 50 basis points from the previous year.
In a further move, the PBOC has decided to add 300 billion yuan to its succession, which aims to support the agricultural sector and small businesses.
Ding also highlighted the role of Entrepreneurship Guarantee Loans, a policy tool introduced in 2016 to promote job creation and entrepreneurship. He said central banks will continue to encourage banks of all levels to implement policies more effectively to expand financial support in stabilizing jobs.
Reissued by Xinhua News Agency