BEIJING, (Reuters) – China will increase financial support to industries, businesses, and individuals affected by COVID-19 epidemics, according to the central bank. This is part of measures to mitigate economic slowdown.

According to the People’s Bank of China, authorities will help financial institutions expand their lending capabilities and return profits to the real world.

Individuals with COVID should be supported by financial institutions. They can delay loan repayments, but not record overdue amounts.

According to the central bank, financial institutions must buy appropriate local government bonds in order to finance infrastructure investment.

China’s economy slowdown in March was due to a drop in consumption, real property, and exports. This took away from faster-than expected first-quarter growth figures, and worsened a outlook already affected by COVID-19 curbs, and the conflict with Ukraine.

China will set reasonable minimum downpayments on residential loans and interest rates for commercial property development and construction companies to stabilise real estate markets, according to the PBOC.

It stated that financial institutions must actively finance transportation and logistic firms as well as truck drivers in order to help support logistics and supply chain management.

Mid-April saw 600 billion yuan ($94.31 trillion) of profits paid by the PBOC to the central state. That’s equivalent to a cut of 25 points in bank reserve requirements ratios. The central bank stated it was on track to earn more than 1.1 billion yuan profit this year.

China’s central bank stated in March that they will make more than 1 trillion dollars in profit this year to the central governments.

Friday’s announcement by the PBOC was that it will reduce the RRR – the cash banks are required to hold in reserves – this is the first year of the slowing economy.

China will allow companies to obtain foreign debt easier, aid firms in currency hedge and cross-border yuan settlements, according to the central bank.

($1 = 6.3623 renminbi)