The central bank set up a special re-loan amount of more than 200 billion yuan for equipment renewal and transformation.

CCTV News:On September 28th, the People’s Bank of China said that it would set up a special re-loan for equipment renovation to support financial institutions to provide loans to manufacturing, social services, small and medium-sized enterprises, individual industrial and commercial households and other equipment renovation at an interest rate not higher than 3.2%.

The amount of special refinancing for equipment renovation is more than 200 billion yuan, with an interest rate of 1.75%, with a term of one year, which can be extended twice, and each extension period is one year. The recipients include 21 financial institutions such as China Development Bank, policy banks, state-owned commercial banks, China Postal Savings Bank and joint-stock commercial banks, and financial support is provided according to 100% of the loan principal that meets the requirements issued by financial institutions.

The special re-loan support areas for equipment renovation include education, health, cultural tourism and sports, training base, charging pile, urban underground utility tunnel, new infrastructure, digital transformation of industry, energy-saving and carbon-reducing renovation and upgrading in key areas, and waste household appliances recycling and treatment system.

Special re-loans are granted on a monthly basis through a direct mechanism of "lending first and then lending".