The central bank of China will issue at the end of the month a first series of low-cost loans to financial institutions to incentivize cuts in carbon emissions, the state news agency reported Tuesday Xinhua, citing the governor of the entity, Yi Gang, in an interview.
The People’s Bank of China (PBOC) said in November that it would provide 60% of the main lending instrument of financial institutions to cut the carbon emissions, with a one-year interest rate of 1.75%, without specifying when the loans would be issued.
The move is in line with China’s goal of bringing the emissions to a maximum before 2030 and achieve carbon neutrality by 2060, and at the same time seeks to protect the economy from the consequences of Covid-19 pandemic.
China’s economy, the world’s second-largest, is facing triple pressure from falling demand, supply problems and weakening growth expectations, Yi said.
“The macroeconomic market must stabilize,” he told Xinhua. “In addition, it is necessary to let the shareholders of the companies and the local authorities take responsibility for the risk events that occur in the market.”
Yi said the People’s Bank of China will maintain its expansionary and appropriate monetary policy and abundant liquidity.
To further ease pressure on businesses, which generally can borrow corporate loans at an average interest rate of 5%, a record low, Yi said, the People’s Bank of China will increase the refinancing fee for small firms as required. necessary.
He added that financial risks are under control and expectations for the real-estate market they have improved.
“The structural adjustment of the real estate market leads to the formation of a new development model for the country’s real estate and the healthy development of the entire industry,” Yi said.
Reference-www.eleconomista.com.mx