offset the adverse impact of the pandemic. the monetary policy is practiced in a more flexible and appropriate manner, and the regulatory policy keenly focuses on the greatest risks. in the first five months of this year, rmb loans issued to the real economy saw an increase of over rmb10 trillion, which is over rmb2 trillion more than the increase in the same period last year. at end - may, outstanding broad money supply ( m2 ) increased by 11. 1 percent year on year, and outstanding aggregate financing to the real economy ( afre ) posted a growth rate of 12. 5 percent year on year. the financial market and the financial system demonstrated great resilience and endurance. in the next step, the government agencies responsible for the financial sector will act upon the requirements laid out by vice premier liu he in his remarks just now, continue to focus on keeping employment and businesses stable, ensure stability on the six fronts ( employment, the financial sector, foreign trade, foreign investment, domestic investment and expectations ) and carry out the task of maintaining security in the six areas ( employment, the basic livelihood of the 1 / 5 bis central bankers'speeches people, market entities, food and energy, the stability of supply and industrial chains, and the smooth functioning of grassroots administration ), to accelerate the normalization of economic activity first, more efforts will be made to encourage cooperation between banks and governments. the damage caused by the pandemic is an irresistible external force from which no market entity can avoid on its own. in this circumstance, governments at all levels have both the responsibility and the capacity to provide information on the regional economy and enterprises in the region to banking institutions. quite a number of heavily - hit enterprises have run into temporary difficulties. however, they have favorable market prospects and solid credit records. banks and governments should take active steps to negotiate and determine rescue plans, and especially ensure that emergency financing is well in place for rolling over maturing debt while guarding against moral hazards. efforts should be made so that fiscal and financial measures at multiple levels are in mutual support and close cooperation. banks should introduce more collateral - free credit products featuring low interest rates, while multiple levels of the government should share costs and losses through interest and guarantee subsidies. to bolster investment, governments should raise as needed the proportion of special local government bonds that can be used as capital for projects, increase support with bank capital, and translate into physical project progress as soon as possible. second, policy finance

to 13. 5 trillion. in the first half of 2009, bill financing, i. e., financing based on commercial drafts, recorded 12. 8 trillion yuan, which amounts to 57. 7 percent of the stock exchange turnover, or 162 percent of the turnover on the interbank borrowing market during the same period. despite the rapid development and growing importance, commercial drafts face a number of problems. these include irregularities in draft acceptance and discount, dishonor by nonpayments, fake drafts, and unregulated innovation. other aspects of the weaknesses include the decentralized markets and inadequate use of information technology. these problems could lead to financial risks, threaten fund security, and hamper the development of the draft market. electronic drafts provide an effective solution to these problems. with the legal foundation and technological support in place, the pbc decided in january 2008to introduce electronic drafts and set up an electronic draft system the system was completed after over one year ’ s preparation. the new system has three major functions. it is designed to receive and process data of electronic drafts and provide relevant payment and clearing services. it serves as a platform where paper drafts are registered. moreover, the system provides quotations for interbank discount, a service that will be offered later. the development of electronic drafts needs institutional support. to ensure the secure, stable, and efficient performance of the system, as we started the new system, we also released 9 regulations in an effort to regulate the behaviors of participants. the launch of electronic drafts and the new system is of great significance. it helps to reduce, or even eliminate operational risks, lower trading costs, improve trading efficiency, and foster the development of a single national draft market. it will encourage the development of commercial acceptance drafts. with the introduction of electronic drafts, short - term interest rates will better reflect the supply and demand in the market. the new system will provide statistics of higher quality to support policy making. electronic drafts will provide a convenient and low - cost financing channel for enterprises, particularly small - and medium - sized enterprises. it will also shape the way financial institutions manage their draft businesses. electronic drafts and the new system have brought a number of changes. with the latest technology integrated in the new system, the traditional manual mode of draft business will be replaced by an advanced one that is based on computer networks. moreover, finance companies can directly access the draft market through the new system, and the maximum period for draft payment is extended from 6 months