BEIJING -- China's central bank on Thursday announced that it has established a re-lending facility worth 200 billion yuan ($30.47 billion) to boost scientific and technological innovation.

The interest rate of the one-year re-lending arrangement stands at 1.75 percent, the People's Bank of China (PBOC) said.

The PBOC will provide low-cost funds for 21 financial institutions to guide them in issuing loans to sci-tech enterprises, so as to leverage the role of social funds in facilitating innovation, according to a statement on the bank's website.

The newly launched re-lending facility will be used to support high-tech enterprises, small and medium-sized enterprises boasting cutting-edge technologies, national-level technological innovation demonstration enterprises, and leading manufacturing companies, among other enterprises.

According to the statement, the PBOC will adopt a mechanism where financial institutions can apply for low-cost funding from the central bank after loans for sci-tech enterprises are released.

The PBOC will provide 60 percent of the loan principal made by financial institutions to boost technological innovation.