China to increase currency and loan supply to boost economy
14/12/2008 11:54
CHINA plans to increase its currency supply by 17 percent in 2009, 3 or 4
percentage points more than the combined GDP and price rise, the State Council,
or the cabinet, said in an on-line statement yesterday.
At the same
time, the State Council decides to increase 100 billion yuan (US$14.61 billion)
of loans this year for the country's policy banks, and encourage commercial
banks to provide loans for projects with central investment to make it possible
that the total loans of financial institutions would increase more than 4
trillion yuan in 2008.
"We must strengthen the role of the financial
sector in supporting economic growth by better implementing an active fiscal
policy and moderately easing monetary policy," the statement said.
Other
efforts to ensure a stable increase of currency and loan supply include
suspending three-year central bank note and cutting issues of both one-year and
three-month bank note.
The State Council also stressed the importance of
increasing more room for lowering lending rate and enhancing the flexibility of
foreign exchange rate.
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