Central Bank: Set up 500 billion yuan in service consumption and pension reloans to support service consumption and the development of the pension industry

The Zhitong Finance App learned that in order to expand the supply of service consumption, boost demand for service consumption, and continue to improve the financial “Five Major Articles”, on May 9, the People's Bank of China issued the “Notice on Issues Related to Establishing Service Consumption and Pension Refinancing” to establish service consumption and pension reloans to encourage and guide financial institutions to increase financial support for key service consumption areas such as lodging, catering, culture, sports and entertainment, education, etc., and the pension industry. The current service consumption and pension reloan amount is 500 billion yuan, with an annual interest rate of 1.5%. The term is 1 year, can be extended 2 times, and the maximum period of use is no more than 3 years. The policy will be implemented until the end of 2027.

The original text is as follows:

The People's Bank of China establishes service consumption and pension reloans to support the development of key service consumption areas and the pension industry

In order to implement the spirit of the Central Economic Work Conference and the April 25 Politburo meeting, expand the supply of service consumption, and continue to improve the financial “Five Major Articles”, on May 9, the People's Bank of China issued the “Notice on Establishing Matters Relating to Service Consumption and Pension Refinancing” to set up service consumption and pension reloans to encourage and guide financial institutions to increase financial support for key service consumption areas such as accommodation, catering, culture, sports and entertainment, education, etc., and the pension industry.

The reloan amount for service consumption and pension is 500 billion yuan, with an annual interest rate of 1.5%. The term is 1 year, can be extended 2 times, and the maximum period of use is no more than 3 years. The distribution targets include 21 national financial institutions, including China Development Bank, policy banks, state-owned commercial banks, postal savings banks, and joint stock commercial banks, and 5 urban commercial banks (hereinafter referred to as 26 financial institutions) that are systemically important financial institutions, including the Bank of Beijing, the Bank of Shanghai, the Bank of Jiangsu, the Bank of Nanjing, and the Bank of Ningbo. The policy will be implemented until the end of 2027.

Based on the application of the business entity, 26 financial institutions independently decide whether to issue loans and loan issuance conditions in accordance with the principle of self-responsibility at risk. For loans that meet policy support areas, 26 financial institutions can apply for reloans from the People's Bank of China on a quarterly basis according to 100% of the loan principal amount, and are responsible for the authenticity of the submitted loan information. On the basis of applications submitted by financial institutions, the People's Bank of China issues reloans to financial institutions in accordance with relevant policies and regulations, and strengthens ex post facto inspection, supervision and management.

This article was selected from the official website of the “People's Bank of China”. Zhitong Finance Editor: Jiang Yuanhua.