9 March 2020
More Financial Support to Help Smaller Firms Resume Production
The State Council decided at its 25 February Executive Meeting to increase financial support to micro-, small- and medium-sized enterprises to help them resume production. Financial institutions are encouraged to defer repayments on loan principals for eligible medium-, small- and micro-sized enterprises with liquidity problems, and which apply for such deferrals, until 30 June, with default interest payments also waived. All kinds of enterprises in Hubei are eligible for this policy. An additional Rmb500 billion in re-lending and re-discount quotas will be issued to give backing to small- and medium-sized banks in their credit support for medium-sized, small and micro enterprises. Interest rates on loans supporting agriculture and small- and micro-sized enterprises will also be lowered by 0.25 percentage points to 2.5%.
Source: State Council