China to offer $489 million in loan subsidies to importers

BEIJING - China will offer 2.5 billion yuan (S$489 million) in loan subsidies to importers for purchases of advanced technological equipment, raw materials and other components, the Ministry of Finance said on Wednesday.

The move is the latest central government effort to use fiscal spending to prop up growth and balance trade.

The money is allocated from the central budget. The funding has seen a 25 per cent increase from last year, the ministry said in a statement on its website.

Beijing has allocated a total of 9.5 billion yuan to offer interest discounts to importers since 2008, when the specialised fund was established.