The people’s Bank of China will provide financem $91 billion

Moscow. On 19 January. The people’s Bank of China (NBK, the Central Bank) intends to pour into the financial system of the country 600 billion yuan ($91 billion) to cope with the seasonal surge in demand for liquidity, according to MarketWatch.

The infusion of funds will occur through mid-lending (Medium-term Lending Facility, MLF), the program Standing Lending Facility (SLF) in which NSC enters into reverse REPO, and the utility of additional collateral (Pledged Supplementary Lending, PSL).

The rate on three-month loans under the MLF will be reduced to 2.75%. In addition, the Central Bank has promised to support small and medium-sized banks and key sectors of the economy through the operation SLF, PSL and re-lending.