China to spend nearly 2.3 trillion yuan in bonds to revive economy

Photo: Adek Berry Agence France-Presse “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.

Agence France-Presse in Beijing

Published at 12:46 a.m.

• Asia

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China's finance minister said Saturday that China will spend nearly 300 billion euros in bonds over the next three months to help revive the world's faltering second-largest economy.

“In the next three months, a total of 2.3 trillion yuan of special bonds can be used,” Finance Minister Lan Fo'an told a news conference in Beijing.

The funds will “help major state-owned commercial banks rebuild their capital base, improve their risk resistance and lending capabilities, and better serve the development of the economy,” he said.

The government 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 governments to allow them to spend more on infrastructure and boost employment.

China's major banks will cut interest rates on most existing home loans from Oct. 25, in line with a request made in September by the central bank, state broadcaster reported Saturday. CCTV.

China experienced one of its weakest growth rates in three decades last year (5.2%), according to an official figure that leaves some economists doubtful given the difficulties weighing on activity.

This rate would be the stuff of dreams for many developed nations, but for China it remains a long way from the dazzling expansion that has propelled it to the top of the global economy in recent decades.