China allows banks to delay bad loan recognition on coronavirus – Bloomberg
|Bloomberg came out with the news of additional measures by China to help the small and medium-sized businesses affected due to the deadly coronavirus. The report relies on the joint report by China Banking and Insurance Regulatory and the People’s Bank of China (PBOC) that said Qualified small- and medium-sized businesses nationwide with principal or interest due between Jan. 25 and June 30 can apply to delay repaying their debt.
Key quotes
The push by banks and regulators to tamp down NPLs is part of a broader effort by President Xi Jinping’s government to shore up the Chinese economy, which some forecasters saying it may suffer a rare quarter-on-quarter contraction in the first three months of 2020.
FX implications
While the news failed to portray any major market reaction, it does contribute to the broad risk-off. That said, the USD/JPY and the AUD/USD keeps portraying the risk aversion while being under pressure around 107.40 and 0.6470 by the press time.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.