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China tries to choke off money supply to non-environmentally
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21:02, July 06, 2007 |
China''s central bank instructed commercial banks on Friday to suspend credit support for to-be-eliminated high-energy and high-resource consuming projects and heavy-polluting projects, demonstrating the country''s determination to reach its energy efficiency and pollutant reduction targets.
The central bank also asked commercial banks to provide no credit support for new projects that are discouraged by the government in terms of energy saving and environmental protection, and give no more than essential credit to ongoing projects of this type.
Commercial banks are required to simplify lending procedures to positively support energy-saving and environmentally-friendly enterprises and projects, and offer them preferential lending policies.
The central bank said that banks should channel credit to projects using energy saving and environmental protection technologies and making innovations in these areas.
It called on lending houses to include environmental protection information in a company''s credit record.
The central bank also encouraged financial institutions to develop more direct financing products for environmentally-friendly enterprises to help them explore financing channels and cut their financing costs.
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