China's Banking Regulator has ordered banks and financial institutions to write off all outstanding debts incurred because of the earthquake that tore through Sichuan close to 2 weeks ago.
The CBRC is hoping to ease the financial burden of victims in the region, while providing good conditions for speedy reconstruction.
The Banking Watchdog says those who cannot pay back what they owe even with compensation from insurance will have their debts written off as bad loans.
But the CBRC is stipulating careful checks asking banks and financial institutions to keep a close record of all write-downs and transactions.
(CCTV May 26, 2008)