Connect with us

Trending

China offers $325 bn in fiscal stimulus for ailing economy

Published

1 month ago

on

Spread the love

China said Saturday it will make $325 billion in fiscal support available to its economy over the next three months, offering help to bolster banks, shore up the property market and free up consumption spending in Beijing’s biggest aid programme since the global financial crisis.

The highly anticipated stimulus came on top of a series of measures announced over the last weeks that have included interest rate cuts and liquidity for banks.

Despite the scale of the package, Finance Minister Lan Fo’an said China had the capacity to dig deeper.

“At present, we are accelerating the use of additional treasury bonds, and ultra-long-term special treasury bonds are also being issued for use,” he said.

“In the next three months, a total of 2.3 trillion yuan of special bond funds can be arranged for use in various places,” he added.

Beijing plans to “issue special government bonds to support large state-owned commercial banks in replenishing core tier-one capital, enhance these banks’ risk resistance and credit lending capabilities, and better serve the development of the real economy”, Lan said.

The debt ceiling of local governments will also be lowered for them to spend more on infrastructure and to help protect jobs.

The figure is slightly more than the two trillion yuan analysts and investors polled by Bloomberg had expected to be announced.

Mortgage help

Beijing has said it is aiming for five percent growth this year — enviable for many Western countries but a far cry from the double-digit expansion that for years drove the Chinese economy.

But the economic uncertainty is also fuelling a vicious cycle that has kept consumption stubbornly low.

Chinese policymakers have unveiled a string of stimulus measures including a suite of rate cuts and a loosening of rules on buying homes, but economists said that more action is needed to pull the economy out of its slump for good.

Earlier on Saturday, China’s top banks said they would cut lower interest rates on existing mortgages from October 25, state media said, following a government call for the action.

“Except for second mortgages in Beijing, Shanghai, Shenzhen and some other regions, the interest rates on other eligible mortgages will be adjusted” to no less than 30 basis points below the prime lending rate, the central bank’s benchmark rate for mortgages, state broadcaster CCTV said.

CCTV reported that major banks including the Industrial and Commercial Bank of China, Agricultural Bank of China, Bank of China, and China Construction Bank had announced that they would make the adjustments “in batches”.

The banks said the tweaks “will be uniformly done… and customers do not need to apply for them”, CCTV reported.

The People’s Bank of China last month requested that commercial banks lower such rates by October 31.

Beijing also last month slashed interest on one-year loans to financial institutions, cut the amount of cash lenders must keep on hand and pushed to lower rates on existing mortgages.

And the central bank this week boosted support for markets by opening up tens of billions of dollars in liquidity for firms to buy stocks.

Beijing said the “swap facility” — worth 500 billion yuan — would encourage “the healthy and stable development of the capital market”.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

“We no lose o” — VeryDarkMan sings and dances after court hearing against Femi Falana and Falz held today.

Published

2 days ago

on

November 14, 2024

By

"We no lose o" — VeryDarkMan sings and dances after court hearing against Femi Falana and Falz held today.
Spread the love

VeryDarkMan’s court hearing against Femi Falana and Falz took place today, and he seems to be celebrating. However, the court actually ruled in favor of Femi Falana, ordering VeryDarkMan to delete defamatory videos about him.

It appears VeryDarkMan had made some allegations against Falana and his son, Falz, which the court deemed defamatory. The court also granted Falana’s request to serve VeryDarkMan with court processes through his lawyer, Deji Adeyanju Esq.

Despite the court’s ruling, VeryDarkMan seems to be in high spirits, singing and dancing after the hearing. It’s unclear what the outcome of the case will be, but for now, VeryDarkMan appears to be taking it in stride.

Continue Reading

Trending

GUNMEN ATTACK MILITARY CHECKPOINT AT ABIA AND IMO BOARDER, ALLEGEDLY KILL TWO SOLDIERS…

Published

2 days ago

on

November 14, 2024

By

GUNMEN ATTACK MILITARY CHECKPOINT AT ABIA AND IMO BOARDER, ALLEGEDLY KILL TWO SOLDIERS
Spread the love

 

Ekwutosblog gathered that Gunmen attacked an army checkpoint earlier today, Wednesday 13th November, 2024 at Ekenobizi, a border community between Abia and Imo states in Umuopara, Umuahia South Local Government Area, killing two soldiers.

A military source, who spoke on the condition of anonymity, said the attack occurred around 6:18 am. The gunmen arrived in a white Lexus (350/400) model, although the exact number of attackers could not be confirmed.

Confirming the incident in a press release on Wednesday, Lieutenant Colonel Jonah Unuakhalu of the Joint Task Force South East Operation UDO KA said: “In the early hours of today, 13 November 2024, troops of the Joint Task Force South East Operation UDO KA, deployed at a checkpoint along the Umuahia – Owerri Road in Umuahia South Local Government Area of Abia State, came under attack by faceless group.

“During the attack, the gallant troops were able to repel the assault, forcing the attackers to retreat in disarray with gunshot wounds, abandoning one Sienna and one Lexus Jeep used in the attack. However, in the ensuing firefight, two soldiers paid the supreme price.”

The Joint Task Force appealed to residents of the South East, particularly those in Abia State, for credible information to help track down the fleeing attackers and combat criminal elements in the region.

The force reiterated its commitment to protecting lives and property in line with global best practices and the rules of engagement.

Kindly follow ekwutosblog on Instagram and Facebook for verified News and Current Affairs in addition to insightful contents that inform, inspire, educate and entertain you always.

Continue Reading

Trending

TV chef found dead in hotel aged 52 after criticising Vladimir Putin

Published

2 days ago

on

November 14, 2024

By

Alexei Zimin has died
Spread the love

A TV chef who fled to London after his opposition of Vladimir Putoin has been found dead while on a promotional tour

A Russian TV chef who criticised Vladimir Putin has been found dead in a Belgrade hotel

Alexei Zimin, 52, died suddenly on a promotional tour to the Serbian capital. Authorities have said his cause of death is currently “unclear”.

Zimin fled Russia to London after his oppositions of Putin. Zimin was once a popular figure on Russian cooking shows. He also owned Zima restaurant in Soho, which he founded after he had left Russia following Putin’s invasion of Crimea.

In a statement released by Zima magazine today, a spokesperson said: “Alexei Zimin, the project’s editor-in-chief and the chef of the Zima restaurant, has passed away. Alexei was not only a colleague, he was our friend, a close person with whom we were lucky to go through a lot – both good, kind and sad.”

London-based exiled Russian TV chef, editor and restaurateur Alexei Zimin, dies at 52.

It concluded: “Thank you to everyone for the words we received today about Alexei. We are hurting together with you.”

Zimin had also been editor-in-chief of the Russian edition of GQ magazine.

Continue Reading

Trending