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	NOTICE OF THE PEOPLE'S BANK OF CHINA ABOUT LOWERING THE DEPOSIT AND LENDING RATES

	(No. 48 [2002] promulgated on February 20, 2002, which shall come into force as of February 21, 2002)


SUBJECT : DEPOSIT AND LENDING RATES
ISSUING DEPARTMENT : PEOPLE'S BANK OF CHINA
ISSUE DATE : 02/20/2002
IMPLEMENT DATE : 02/21/2002
LENGTH : 462 words
TEXT :

Upon the approval of the State Council, the People's Bank of China has decided to lower the deposit and lending rates of the financial institutions as of February 21, 2002. It is hereby to notify as follows:

I. Lowering the deposit interest rates. All the annual deposit interest rates shall be lowered 0.25% at an average on the basis of the current rates (see Table 1).

II. Lowering the lending rates. All the annual lending rates shall be lowered 0.5% at an average on the basis of the current rates (see Table 1). The lending rates of the personal housing loans shall be lowered accordingly, the rate for the term of less than 5 years shall be lowered from the current 5.31% to 4.77 %, and the rate for the term of more than 5 years shall be lowered from the current 5.58 to 5.04 %.

III. Lowering the deposit interest rates and re-lending rates (see Table 3) of People's Bank of China to the reserves of the financial institutions, while the current rediscount rates remain unchanged.

IV. Lowering the re-lending rate of the People's Bank of China to the agricultural credit unions, the rate for the term of less than 20 days shall be lowered from the current 2.25% to 1.71%. The rate for those whose term is less than 3 months shall be lowered from the current 2.52% to 1.98%. The rate for those whose term is less than 6 months shall be lowered from the current 2.7% to 2.16%, and the rate for those whose term is less than 1 year shall be lowered from the current 2.79% to 2.25%.

V. Lowering all the preferential lending rates accordingly (see Table 4). The standards and measures for the subsidies to the margin of the preferential loans remain unchanged.

VI. The current outstanding lending rates and the delinquency interest rates of the loans by means of unwarranted diversion of (financial) resources (from designated uses) have no change.

VII. Lowering the rates of the policy financial bonds (the part not issued to the market) accordingly, among which the rate of the five-year bonds shall be lowered from the current 4.59% to 4.32%, the rate of the eight-year bonds shall be lowered from the current 5.04% to 4.77%.

Having received this Notice, all the branches of the People's Bank of China shall serve it to the local financial institution immediately and shall supervise and urge them to implement relevant requirements in time. At the same time, you should investigate and study the feedback from all sides and the relevant issues after the rates have been lowered, and shall report the relevant information to the Currency Policy Department of the Head Office of the People's Bank of China in time. (Fax: 010-66012765)

Attachments: Omitted