China said Thursday that it will do more to help the nation’s coal and steel enterprises shift capacity overseas while keeping tight control on new capacity addition at home.
As part of efforts to ease the domestic steel and coal overcapacity, authorities will strengthen financing support for enterprises ‘going out’, the central bank said in a joint statement issued with several other government bodies.
Loans, export credits and project financing will be offered to encourage coal and steel businesses to build capacity abroad, the statement said, according to Reuters.
Meanwhile, the government will strictly control credit available for new capacity additions in China.
China plans to shed 100-150 million tons of domestic crude steel capacity in the next five years, and another 500 million tons of surplus coal production, in a bid to tackle huge capacity overhangs that have saddled domestic firms with losses and debts.
Authorities said in the statement Thursday that they will speed up the handling of non-performing loans in the debt-ridden sectors, and extend direct financing to support their restructuring.
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