China to offer 300b yuan credit support for epidemic control

China's central bank will issue loans totaling 300 billion yuan (about $43 billion) to policy and commercial banks via its re-lending program on Feb 10 as part of measures to finance the control of the novel coronavirus outbreak.

The special loans will be issued at a preferential rate, said Liu Guoqiang, vice-governor of the People's Bank of China, at a national teleconference on Feb 9.

The commercial and policy banks should use the loans to support activities that directly link with epidemic control by companies short-listed by authorities, Liu stressed.

As the loans will be issued at rates lower than market interest rates, the central bank will strictly track the use of funds to prevent potential arbitrage, Liu said.

The teleconference was also attended by the country's Finance Minister Liu Kun, who said that China will step up financial support and offer tax incentives for enterprises involved in epidemic control.

As businesses of some small enterprises were hit hard during the Spring Festival holiday, fiscal authorities at all levels should be prepared to ease their difficulties as they resume production, Liu said.