China's Central Bank Boosts Support for Flood-Hit Agriculture with $14 Billion Injection

China's central bank will issue an additional 100 billion yuan to banks to aid areas devastated by floods. This follows severe weather that damaged crops and caused significant economic losses. The People's Bank of China's re-lending facility aims to assist various regions and helps ensure production resumes in disaster-stricken areas.

China's central bank announced on Tuesday a 100 billion yuan ($14 billion) funding boost to support areas ravaged by recent floods, which have damaged approximately 6 million acres of crops. This move follows extreme weather, including Typhoon Gaemi, record rains, and intense heat waves, affecting major agricultural regions.

Vice Premier Liu Guozhong, emphasizing the need for a substantial autumn harvest, has prompted the central bank's additional funding for 12 regions under flood prevention and reconstruction initiatives. The People's Bank of China (PBOC) will channel funds to provinces such as Fujian, Guangdong, and Henan, aiming to help farmers, small businesses, and households recover.

The PBOC has already introduced 2.61 trillion yuan in re-lending quotas for agriculturalists and small firms. The Ministry of Emergency Management highlighted that natural disasters in July resulted in 76.9 billion yuan ($10.1 billion) in economic losses, primarily from heavy rains and floods, marking the highest losses in nearly two years.

(With inputs from agencies.)