China's central bank unveils one-off credit repair policy

China's central bank has rolled out a one-off credit repair policy to improve the public's overall credit profile and reinvigorate market vitality. However, officials have insisted that the move is not a relaxation of credit discipline and that credit constraints will be maintained for those who fail to repay by the specified deadline or who have large overdue debts.

People's Bank of China Vice-Governor Zou Lan said on Monday the policy does not apply solely to specific lending institutions or loan types, nor does it require applications or complex procedures, offering individuals who meet repayment obligations by the specified deadline a clear pathway to rebuilding credit.

At the same time, Zou said, the policy sets limits on overdue duration and amounts, providing targeted support for credit rebuilding by individuals with small overdue amounts who have fulfilled their repayment obligations while preserving credit restraints for unpaid or large overdue cases.

Zou said this approach upholds the seriousness and binding nature of the credit reporting system and reinforces the bottom line of fulfilling contractual obligations.

Experts stressed that the measure is a precise repair, not "credit laundering", and does not exempt debts. Only full repayment qualifies for credit recording adjustments, with the accountability to repay debt firmly intact.