No loans for polluters

China said yesterday that it would bar companies that violate environmental rules from getting bank loans.

Pan Yue, deputy director of the State Environmental Protection Agency (SEPA) told Xinhua that "companies that fail to pass environmental assessment or fail to implement China's environmental protection regulations are disqualified from getting any loans from any bank or financial institution."

According to AP, the policy appears to be aimed at companies who find it cheaper to pay fines or bribe local officials rather than help cut pollution.

SEPA did not explain how the new policy would be implemented.