(Yicai Global) Feb. 7 -- The Export-Import Bank of China, a policy bank under the State Council, will exempt companies affected by the novel coronavirus-caused pneumonia from about CNY600 million (USD87 million) in interest on around CNY160 billion (USD23 billion) in loans this month, China Securities Journal reported today.

This exemption will benefit micro, small and medium firms in the most stricken Hubei province in central China and those in the wholesale, retail and logistics and transport fields greatly impacted by the epidemic in the country's other regions. The bank will also discover more about these companies' needs and issue yet more policies to reduce their burdens.

The lender has granted nearly CNY4.5 billion in loans to medical and counter-epidemic material producers in Hubei, and the other severely-afflicted provinces of Zhejiang, Jiangsu, Fujian and Guangdong, and in Shanghai since the pneumonia broke out and has issued CNY3 billion in epidemic-themed bonds, lending the proceeds for use in further prevention and control of the pestilence.

The People's Bank of China issued 30 policies on Feb. 1 requiring financial institutions to provide monetary support for prevention and control of the contagion, Pan Gongsheng, the central bank's deputy governor, said at a press conference today. PBOC swiftly set up a CNY300 billion dedicated fund for financial institutions to extend credit to medical and other firms fighting the virus and to those producing living necessities.

The bank also conducted CNY1.7 billion in unexpected reverse repurchases on Feb. 3 and Feb. 4 and lowered the bid-winning interest rate, Pan said at the briefing, adding his prediction that the bid-winning interest rate for the next medium-term lending facility and the loan prime rate to be released on Feb. 20 will likely drop.

Editor: Ben Armour