![](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2025\/12\/1766417297_513_maxresdefault.jpg\"\/)
<\/p>\nChina\u2019s central bank has unveiled a credit-rehabilitation policy to help individuals who defaulted on small loans rebuild their financial standing \u2013 part of a broader push to bolster the economy and repair household balance sheets.<\/p>\n
The People\u2019s Bank of China said the measure targets borrowers with a single instance of overdue debt incurred between 2020 and 2025 and not exceeding 10,000 yuan (US$1,421). If the debt is fully repaid by March 31, the default record will be hidden from credit reports.<\/p>\n
\u201cThe policy was introduced to help pandemic-hit borrowers, who are actively repaying their loans, rebuild their credit swiftly,\u201d the PBOC said in a statement on Monday, adding that the move aims to address the Covid-19 pandemic\u2019s lasting economic fallout.<\/p>\n
The policy will be automatically administered by the central bank\u2019s credit reference centre, requiring no individual applications, and is due to be implemented in phases starting in 2026.<\/p>\n
One of the central bank\u2019s deputy governors, Zou Lan, said at a press briefing on Monday that while many borrowers affected by pandemic-related hardships have since repaid their debts, delinquency records remain on their credit reports, continuing to hinder access to new loans.<\/p>\n
The new measure supports economic growth by invigorating grass-roots economic activity and helping financial institutions assess creditworthiness more accurately, Zou said.<\/p>\n
<\/p>\n
03:21<\/p>\n
China\u2019s youth unemployment soars to 2-year high as job crunch deepens<\/p>\n
China\u2019s youth unemployment soars to 2-year high as job crunch deepens<\/p>\n","protected":false},"excerpt":{"rendered":"China\u2019s central bank has unveiled a credit-rehabilitation policy to help individuals who defaulted on small loans rebuild their…\n","protected":false},"author":2,"featured_media":246034,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":"","_share_on_mastodon":"0"},"categories":[174],"tags":[128771,4932,79,381,568,179,18,43849,19,17,53585,9708,2711,40672,128773,128772,128774],"class_list":["post-246033","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-beijing-javy-law-firm","tag-bloomberg","tag-business","tag-china","tag-covid-19-pandemic","tag-economy","tag-eire","tag-fitch-ratings","tag-ie","tag-ireland","tag-pan-gongsheng","tag-pboc","tag-peoples-bank-of-china","tag-xinhua","tag-yicai","tag-zhao-zhanling","tag-zou-lan"],"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@ie\/115763931866774460","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/246033","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/comments?post=246033"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/posts\/246033\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media\/246034"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/media?parent=246033"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/categories?post=246033"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/ie\/wp-json\/wp\/v2\/tags?post=246033"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}