More credit urged for large-scale projects

China's financial institutions are being urged to increase credit support to large-scale projects to guarantee their continuity, despite the economic slowdown.

Central authorities, banks and other financial institutions are being advised to provide continued support to local government financing vehicles eligible for such loans, according to a report in China Securities Journal.

This year will see a peak in the maturity of local government debt, and financing vehicles are facing increased repayment pressures, it said.

So industrial insiders are calling for further relaxation in bank credit policy to prevent financial strains, which could lead to a rise in the bank's non-performing loans, the report said, attributing sources close to the situation.

Credit support will be prioritized to projects that are in line with the county's development strategy, such as infrastructures, energy saving and emission reduction, and "green credit", the source said.

The proposal also suggested a more easing environment to encourage private capital to participate in the financial sector.

The country's 12th Five-Year Plan (2011-15) set a target for its environmental protection industry to grow 15 percent in size annually, and to reach 4.5 trillion yuan by 2015.