Following the earthquake that occurred in China in May 2008, victims who are unable to repay their loans have been granted an extension of their deadlines.

A statement from the country’s central bank said yesterday, individuals that borrowed money before the May 12 earthquake in Sichuan have had their deadline extend from 2008 to June 2009.

Also, corporations were granted a grace period up to the end of this year, a statement on the bank’s website confirmed.

No fewer than 80,000 lives were lost and more than 5 million people were rendered homeless by the quake in a swathe of devastated mountain towns.

Following the quake the country’s banking regulator told local banks in August to offer additional loans in the affected region.

They were also advised to not put pressure on those who are unable to repay their debts.

Reports said the quake zone was also one of the main beneficiaries of a stimulus package the Chinese government announced two months ago, and that it now resembles a giant construction site.