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China Pumps $74B Into Banks Amid Credit Crisis
Worried about an economic slowdown amid worsening trade relations with the U.S. and a credit crisis sparked by a massive deleveraging drive, China’s central bank, the People’s Bank of China (PBOC), has unexpectedly made a massive 502 billion yuan ($74.36 billion) available to commercial banks in the form of one-year medium-term lending facility (MLF). The money is meant to encourage more bank lending after a multi-year campaign by the Beijing government to curb debt started causing serious shockwaves in financial markets. A record numbers of companies ended up defaulting on their debt obligations in the current ... (full story)