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Central Bank to Accept Lower-Grade Collateral for Lending Facility

The People's Bank of China headquarters in Beijing on April 20. Photo: VCG
The People's Bank of China headquarters in Beijing on April 20. Photo: VCG

The People’s Bank of China (PBOC) is broadening the kinds of collateral it accepts for medium-term lending operations, aiming to increase support for smaller firms, agriculture and the green economy in particular.

The PBOC said it will accept AA-grade-and-above small-and-micro enterprise bonds, green bonds, and agriculture-related financial bonds; AA+ and AA grade corporate credit bonds; and high-quality small and micro-enterprise loans and green loans as collateral for its Medium-Term Lending Facility (MLF), according to a statement issued June 1.

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