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China to issue policy loans to finance stimulus package

By Zheng Lifei (chinadaily.com.cn)
Updated: 2009-03-06 13:53

Zhang Ping, Chairman of the National Development and Reform Commission, gestures while answering questions during a press conference on the sidelines of the 2nd Session of the 11th NPC in Beijing, March 6, 2009.[Xinhua]

China will grant some policy loans to fund its 4-trillion-yuan economic stimulus package, the country's top economic planner said on Friday.

Such loans will be treated as "special policy tools drafted under special conditions", Zhang Ping, minister of the National Development and Reform Commission (NDRC), told a press conference during the ongoing session of the 11th National People's Congress.

NDRC, together with the Ministry of Finance, the central bank and banking regulators, have worked out a specific plan, Zhang said. The government will issue long-term policy loans with low interest rates to serve as the seed capital for some projects, Zhang said, without giving further details.

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China to issue policy loans to finance stimulus package