Alternative financing routes for energy-intensive companies
June 10, 2010 | BY
clpstaff &clp articlesPRC banks ordered to tighten lending
There are alternative ways to obtain financing as domestic lending gets squeezed for energy-intensive projects, says counsel.
The People's Bank of China (PBOC) issued a circular on May 31 2010 ordering financial institutions to tighten up their lending threshold to companies in energy-intensive industries.
According to the circular, banks are required to make an overall review of loans to energy-consuming sectors and report the results to the central bank by the end of June. The measures additionally highlighted that credit for expansion projects could only be extended by bank headquarters and that new loans would be prohibited to projects that counter the government's green policies.
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