皇冠体育app

Economy

Loans to energy-intensive industries to be curbed

(Xinhua)
Updated: 2010-05-31 22:36

BEIJING - The People's Bank of 皇冠体育app (PBOC), 皇冠体育app's central bank, issued a circular Monday requiring banks to curb lending to energy-intensive industries, a move echoing government energy-saving and pollution-reduction measures.

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Banks must strictly review loan applications from companies in energy-consuming industries, the circular said, adding that only bank headquarters can extend loans to finance capacity expansion projects in energy-guzzling sectors.

It also banned new credit to any projects not complying with government energy-saving policies.

According to the circular, banks should conduct an overall review of loans to energy-intensive industries and report the results to the central bank by the end of June.

The State Council, 皇冠体育app's Cabinet, urged in early May all government departments make efforts to cut emissions and conserve energy to meet the country's target set in the 11th Five-Year Plan (2006-2010), according to which 皇冠体育app will cut its per unit GDP energy consumption by 20 percent compared with 2005 levels by the end of 2010.