Central Bank: Manage and use re-lending and re-discount policies well

On March 17, in order to implement the requirements of the State Council executive meeting on March 10 to better play the role of the re-lending and re-discount policy, the People's Bank of China held a video and telephone conference to discuss the use of re-loan and re-discount policy support. The resumption of work and production will be re-mobilized, redeployed and re-arranged.

It is worth mentioning that the central bank decided at the meeting on February 26 to increase the special re-loan and rediscount quota by 500 billion yuan on the basis of the 300 billion yuan special re-loan already established for epidemic prevention and control in the early stage. Yuan, at the same time, the interest rate for refinancing to support agriculture and small businesses was lowered by 0.25 percentage points to 2.5. Among them, the re-loan quotas to support agriculture and small businesses are 100 billion yuan and 300 billion yuan respectively, and the rediscount quota is 100 billion yuan. Before the end of June 2020, local corporate banks will be allowed to apply for re-loan funds for the same amount of new inclusive small and micro enterprise loans that are not higher than LPR plus 50 basis points.

On March 10, the State Council executive meeting once again pointed out that relevant departments, in accordance with the requirements of the State Council, will guide financial institutions to implement a 300 billion yuan special re-loan and a 500 billion yuan re-loan and rediscount policy, with strong support from preferential interest rate funds. It ensured the supply of epidemic prevention and control materials and allowed agriculture and enterprises, especially small and micro enterprises, to resume work and production.

The State Council executive meeting stated that it is necessary to further implement policies, speed up the progress of loan disbursement, and better ensure the supply of epidemic prevention materials, spring plowing preparations, international supply chain product production, labor-intensive industries, small, medium and micro enterprises, etc. funding requirements. Appropriately delegate authority for credit loan approval. Strengthen audit supervision to prevent "dip and leakage" and improve the effectiveness of supporting the real economy.

To this end, the People's Bank of China requires that all branches should further manage and use the re-loan and re-discount policies, and focus on supporting the "difficulties" and "pain points" that urgently need to be resolved at this stage and are greatly affected by the epidemic. , mainly including supporting the resumption of work and production of small and micro enterprises with weak ability to fight the impact of the epidemic, supporting key fields such as pig and other livestock and poultry breeding, aquaculture, and phosphate fertilizer production, supporting foreign trade fields such as international supply chain product production, and supporting poverty-stricken areas. For economic and social development, financial support must also be provided to industries such as tourism and entertainment, accommodation and catering, and transportation that have been greatly affected by the epidemic.

It is understood that since the introduction of the 500 billion yuan re-lending and re-discount policy, the People's Bank of China head office and various branches have taken a variety of measures to effectively promote the implementation of the re-loan and re-discount policy and actively guide financial institutions to issue loans that meet the requirements. The required preferential interest rate loans guide funds to be invested in the resumption of work and production, achieving the policy effect of precise drip irrigation. As of March 15, financial institutions had issued a total of 111.4 billion yuan in preferential interest rate loans, playing an important role in supporting enterprises to resume work and production.

The central bank emphasized that although the current epidemic prevention and control situation has undergone positive changes and the resumption of work and production of enterprises is advancing steadily and orderly, the tasks of epidemic prevention and control and economic and social development are still arduous and onerous, and the People's Bank of China must make good use of the There are financial support policies in place, and we will continue to increase financial support and further leverage the policy effects of re-lending and re-discounting.

In addition, the central bank also stated that all branches must strengthen supervision and management to ensure that funds are distributed in compliance with laws and regulations to prevent "leakage". It is necessary to pay more attention to the decisive role of the market in resource allocation and promote the organic combination of market-oriented financing methods such as commercial loans and re-lending and re-discount policies in supporting the development of the real economy.