The Chinese Minister of Finance announced on Saturday that China would devote nearly 300 billion euros in bonds over the next three months, in order to revive the world’s second largest economy, which is losing momentum.
“In the next three months, a total of 2.3 trillion yuan of special bonds can be used,” Minister Lan Fo’an said at a press conference in Beijing.
These funds will “help large state commercial banks replenish their capital base, improve their risk resistance and lending capabilities, and better serve the development of the economy,” he said. explain.
This public spending comes on top of a series of measures announced in recent weeks, including interest rate cuts and the provision of liquidity to banks.
Beijing will also raise the debt ceiling for local authorities to allow them to spend more on infrastructure and promote employment.
The main Chinese banks will lower interest rates on most existing property loans from October 25, in accordance with a request made in September by the Central Bank, state channel CCTV also announced on Saturday.
China experienced one of its lowest growth rates in three decades last year (5.2%), according to an official figure which leaves some economists doubtful given the difficulties weighing on activity.
This rate would make many developed nations dream, but for China it remains far from the dazzling expansion that has propelled it to the top of the world economy in recent decades.
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