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China to give financial aid to drought-relief work

0 CommentsPrint E-mail Xinhua, February 17, 2011
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China's central bank said Wednesday it will use various currency tools to increase funding for drought relief in major wheat growing regions.

Further, the People's Bank of China will closely monitor grain price trends at home and abroad, while using currency tools to keep prices stable, Deputy Governor Du Jinfu said in a statement posted on the central bank's website Wednesday.

The central bank will guide financial institutions to offer immediate loans to agricultural purchases and expanding lending to water projects and other rural infrastructure in a bid to boost grain production, Du said.

As of Monday, the lingering drought had affected 101.18 million mu (6.75 million hectares) of winter wheat in the provinces of Hebei, Shanxi, Jiangsu, Anhui, Shandong, Henan, Shaanxi and Gansu, according to the Ministry of Agriculture.

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