China Asks Banks to Pause New Loans to US
Bloomberg.com • • nation
Key Points:
- China’s financial regulator has instructed the country's largest banks to temporarily halt new loans to five refiners recently sanctioned by the US due to their connections with Iranian oil.
- The National Financial Regulatory Administration specifically asked banks to review their exposure to firms including Hengli Petrochemical (Dalian) Refinery Co., one of China’s biggest private refiners.
- Banks have been advised not to extend new yuan-denominated credit to these firms but are not required to call in existing loans at this time.
- The directive is a temporary measure while the regulator awaits further guidance on handling these sanctioned entities.
