The People's Bank of China, the country's central bank, said on July 1 that it has arranged a 12-billion-yuan ($1.94-billion) re-lending quota to boost financial support for small and micro-businesses and rural areas.

Re-lending is a monetary tool used by the central bank to increase the liquidity of financial institutions and guide credit flows.

The central bank requires that funds from the quota be credited to small and micro-businesses, as well as the agricultural sector, rural areas and farmers.

About 162 billion yuan ($26.44 billion) has been accumulated in the re-lending quota to date, and 45 percent has gone to small and micro-businesses and 27 percent to rural areas.