More than $40 billion of low cost funds will be extended from the People’s Bank of China to support the production of necessities in the virus-ridden Hubei province.
The PBoC will provide 300 billion yuan ($43.3 billion) of low cost funds to major national and local banks in the province, according to a «Caixin» report citing Pan Gongsheng, a deputy governor at the central bank. The funds will be used as low interest loans for companies producing urgently required medical supplies and daily necessities.
In addition, listed firms hit by the outbreak can apply to postpone the release of their latest quarterly and annual financial results. Listed companies and futures companies in the Hubei province will also be exempt from the annual fee paid to their respective exchanges.
National Efforts
China's financial authorities continue to set up their relief efforts to support businesses in the Hubei province which also faces headwinds from a broader national slowdown. Lenders have been urged to roll over loans from affected borrowers, allow mortgage and credit card repayment delays and to keep credit lines open especially for small businesses and those in the retail, wholesale, logistics, foodservice and tourism sector.
Although an extended break from work has been offered to some to avoid human contact in the ongoing crisis, financial workers have been deemed essential to the state. In the case of Shanghai, bankers and brokers called to work this week will receive double pay alongside alternative work arrangements for preventive measures.
