China’s largest policy bank to promote local government infrastructure loans

China’s largest policy bank to promote local government infrastructure loans

BEIJING (Reuters) – The China Development Bank said on Thursday it would increase the number of infrastructure loans it gives to local governments, prioritizing the needs of major economic provinces.

It comes after China’s cabinet was quoted as saying in August that it would take more steps to support the world’s second-largest economy, including increasing financing support for infrastructure projects.

The China Development Bank said in a statement that the bank has spent 360 billion yuan ($50.76 billion) financing more than 800 infrastructure projects, without giving a time frame.

“The fund will prioritize support for infrastructure projects in key areas that can begin construction as soon as possible in the third quarter,” the China Development Bank, the country’s largest policy lender by assets, said.

As part of the 360 โ€‹โ€‹billion yuan, the China Development Bank spent 2 billion yuan on a railway linking Guangzhou Baiyun International Airport with a village in the southern city of Guangzhou and 1 billion yuan on a water project in the southern region of Guangxi.

As part of that total, it also offered 150 billion yuan to fund 421 projects after last month’s cabinet meeting.

At the August meeting, the cabinet said China would unveil 19 new policies to support the economy, including increasing the quota on policy financing instruments by 300 billion yuan, state media reported at the time.

(dollar = 7.0925 renminbi)

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