This undated photo shows the People's Bank of China Governor Yi Gang. (PHOTO / BLOOMBERG)

The governor of the People’s Bank of China (PBOC), China's central bank, said the PBOC will focus on five measures to support credit provision to the real economy, following the government’s announcement of more “direct” support in its annual policy blueprint released last week.

In the near future, officials plan to roll out more measures to enable small firms to delay repayment of loans and interest, increase collateral-free credit to small companies, improve the government’s associated credit guarantees, support corporate bond sales and develop supply-chain finance, Yi said in a local-media interview according to a statement published on the PBOC’s website.

PBOC Governor Yi Gang said targeted monetary measures to ensure sufficient liquidity, lower borrowing costs and provide cheap credit have worked well, and the PBOC plans to make its policy more precise and targeted in the future

Yi didn’t specify if the monetary authority would roll out new instruments to deal with the impact of the pandemic, but signaled that the current targeted, moderate approach to stimulus would continue.

China’s measures to contain the spread of the virus and restart the economy are a “major strategic achievement”, with production and people’s lives going back to normal, Yi Gang said in an interview with local media on Tuesday. Even in the face of global turmoil, the improving momentum of the domestic economy won’t change, Yi said.

ALSO READ: China's economy likely to maintain stable growth

Yi also said targeted monetary measures to ensure sufficient liquidity, lower borrowing costs and provide cheap credit have worked well, and the PBOC plans to make its policy more precise and targeted in the future.

The remarks signal a continuation of the government’s modest approach to monetary stimulus, even if some economists warned the economy could fall into a technical recession this quarter. Top leaders have abandoned a growth target for 2020, focusing instead on employment stability and poverty alleviation.

Talking about risks, Yi said global economic fundamentals face severe challenges, and the global economic downturn “will very likely be worse than the global financial crisis in 2008 and even the Great Recession”.

READ MORE: China's fiscal measures primed to weather coming storm

Domestically, the economic shocks caused by the pandemic are weighing on the quality of bank assets, Yi said, calling for attention to small financial institutions especially. Banks will likely face increasing pressure from non-performing loans, and the PBOC will support them to replenish capital, he said.

On the PBOC’s digital currency plan, Yi said there’s still “no timetable” on a formal launch yet, and its current trials in some cities are part of “routine research and development.”