April 25 2022

PBC and SAFE Roll out 23 Policy Measures to improve Financial Services

Source: People's Bank of China

The People's Bank of China ("PBC") and the State Administration of Foreign Exchange ("SAFE") released on April 18, 2022 the Circular on Improving Financial Services to Support Economic and Social Development amid Covid Control, which rolls out 23 policy measures.

The Circular called for more financial support for sectors, enterprises, and people affected by the epidemic, urging financial institutions to flexibly support trapped people by reasonably postponing their repayment deadlines, extending the terms of loans, and allowing them to defer payment of principals. For the relevant overdue loans, the financial institutions may choose not to record them as overdue for reporting.

It is clarified that the regulators will conduct the pilot program of issuing quotas for a higher level of RMB settlement facilitation and corporate foreign debt facilitation, allowing for settlement of domestic foreign exchange (FX) loans oriented for trade and export, and the China Foreign Exchange Trade Center will waive micro and small businesses from the fees for transaction of FX derivatives at the inter-bank FX market.

People's Bank of China