Zhejiang Finance Discount 65 Million To Save Shoes, Leather, Textiles And Other Small And Medium Enterprises

Zhejiang province has allocated 65 million yuan of funds this year to the "risk compensation of loan guarantee for small and medium-sized enterprises". Among them, the provincial finance has paid interest to the guarantee institutions in accordance with 2.5 per cent of the new loans, and the local finance has also matched the equivalent amount of funds.

Different from the "good luck" of small and medium-sized enterprises, many foreign trade enterprises are facing the international buyers' bad debts and frequent bad debts.

Analysts said that this is one of the measures to rescue SMEs in Zhejiang. The 65 million yuan from the provincial finance can guarantee loans to SMEs for up to 26 billion yuan.

Previously, the private economy province has written many times, hoping to get policy support.

A person in charge of a financial institution in Zhejiang who has provided loans guarantees to small and medium-sized enterprises repeatedly has described: "under the macroeconomic regulation and control, local governments can only" finance blood pfusion "from the finance and taxation to maintain the growth of local economy.

    追加3000萬

According to the twenty-first Century economic report, the head of the Finance Bureau of Zhejiang SME Bureau said, "from the amount of financial contributions made by the provincial government, the increase from 35 million to 65 million this year is to increase support for SMEs."

In terms of amount, 65 million yuan seems to be a drop in the bucket for Zhejiang's entire economy.

However, the practice of "discount interest" to the guarantee institutions at provincial level has enlarged the energy of these funds. According to the calculation of 2.5 per cent of the new discount loans at the provincial level, the fund can lift 26 billion yuan loans.

More importantly, the credit of these loans is guaranteed by government credit, which increases the probability of obtaining loans for SMEs.

It is understood that the loan guarantee risk compensation fund directly derives from the Zhejiang provincial finance, and is the government's guiding fund to encourage and promote SME credit guarantee institutions to guarantee loans for small businesses.

However, the issue of funding channels for this policy remains to be resolved.

"Last year, we found that some channels did not pay interest payments in a timely manner. In this regard, we need further strengthening management."

A staff member of the Zhejiang Provincial Department of Finance said that there was also a problem of late payment in the matching process of some local governments.

With regard to how this policy will benefit more enterprises in this year's efforts to increase macroeconomic regulation, the Zhejiang provincial finance department said: "this year, we will also consider changing the application method and whether it will be rolled out in the whole province."

    “組合拳”出招

While increasing the amount of financial discount, a new tax policy, which seeks to ease the pressure on the capital chain of enterprises through taxation, has also been implemented in Jiaxing, a strong economic city in Zhejiang province.

Jiaxing has recently announced that the small and small profit industrial enterprises that meet certain conditions should be reduced by 20% according to the enterprise income tax; the high and new technology enterprises that meet the requirements of the State shall be deducted from the enterprise income tax on the basis of 15%; if the enterprise's innovative R & D expenses and the intangible assets are not included in the profits and losses of the current period, it will be deducted from 50% of the research and development expenses on the basis of 100% deduction according to the regulations, and the intangible assets will be amortized according to the cost of intangible assets 150%.

Some enterprises in Jiaxing even get the longest privilege of three months' tax payment to increase the "cash flow" of enterprises and reduce the pressure of capital operation.

The director of the Zhejiang financial institutions said: "fiscal and tax are the only two weapons in the hands of the local government. This time it is used to illustrate the determination of the local government to support the economy."

    出口企業(yè)壞帳壓力加大

It is also reported that although the government supports small and medium enterprises, many foreign trade enterprises in Zhejiang are still facing the risk of bad debts, mainly due to frequent international buyers.

According to the statistics of China Export and Credit Insurance Corp Zhejiang branch, the amount of reported loss cases in the first five months amounted to US $30 million 340 thousand, up 80% over the same period last year, and the reparations were 8 million 950 thousand US dollars, up 525.6% over the same period last year.

Among them, the number of claims increased by 525.6% over the same period last year, and the overseas bad debt rate of local enterprises increased by about 268%.

A series of effects were eventually pferred to the export enterprises.

It is reported that due to the impact of the subprime mortgage crisis, the demand for the US market has dropped, making the Wenzhou shoe leather industry a heavy hit with the US as its export destination.

There are signs that the US subprime crisis has spread to manufacturing and consumer goods.

According to the analysis of China's Zhejiang insurance company, its acceptance cases are characterized by a large number of cases, involving a large amount of money, and the high risk rate of US buyers. The products involve home decoration, building materials, textiles, auto parts and so on.