State Council: Increase Financial Support For Small And Medium Enterprises To Resume Production And Resume Production

Xinhua news agency, Beijing, February, 25 (reporter Wu Yu) the executive meeting of the State Council, held on 25, pointed out that the financial support measures for resuming and resuming production of small and medium enterprises should be strengthened according to the principle of marketization and rule by law. It is determined to encourage financial institutions to grant temporary loans and repayment of interest and interest payments to small and medium enterprises, and to offer loans with preferential interest rates.

"At present, enterprises are faced with problems such as debt repayment, capital turnover and expansion of financing, etc., especially for small and medium-sized enterprises." Dong Ximiao, a special research fellow of the national finance and development laboratory, said that increasing financial support for the resumption of production of small and medium enterprises is timely and necessary, which helps small and micro enterprises to better cope with the adverse effects of the epidemic and ensure safe, orderly and resumed work.

The meeting proposed that financial institutions should be encouraged to apply for temporary loans for repayment of loans to eligible small and medium enterprises with temporary liquidity difficulties, including individual business owners, with a temporary delay in repayment arrangements. Interest payments can be extended to June 30th and exempt from penalty fees. All kinds of enterprises in Hubei can enjoy the above policies.

Wen Bin, principal researcher of China Minsheng Bank, believes that these measures are highly targeted, which can relieve the pressure of repayment of small and medium-sized enterprises and prevent the breakup of capital chains.

The meeting proposed that the amount of re loan and rediscount amount should be increased by 500 billion yuan, which should be mainly used by small and medium-sized banks to increase credit support for small and medium enterprises. At the same time, the interest rate of supporting agriculture and supporting small businesses was reduced by 0.25 percentage points to 2.5%. Before the end of June, new loans granted by local corporate banks were not higher than the loan market quotation rate plus 50 basis points, and loans for small and micro enterprises were allowed to apply for refinancing loans.

Wen Bin said that the effect of structural monetary policy tools is gradually emerging. By increasing refinancing, rediscount, and reducing the interest rate of supporting agriculture and small loans, it can directly increase the source of low cost funds for small and medium banks, and improve the ability of small and medium-sized banks to provide credit for small and medium enterprises. "At the same time, we should pay attention to giving play to the role of inclusive financial system, and encourage commercial banks to increase credit support for small and micro enterprises, and further reduce the financing costs of enterprises."

The meeting proposed that the national commercial banks should be encouraged to increase their credit to small and micro enterprises, and strive to reduce the interest rates of small and micro loans significantly lower than the previous year. In the first half of the year, the growth of loans for small and micro enterprises in the state owned large banks should not exceed 30%. Policy banks will increase the special credit limit of 350 billion yuan, and distribute them to private, medium and small enterprises with preferential interest rates.

Dong Ximiao believes that in the critical stage of epidemic prevention and control and resumption of production, large state-owned commercial banks should give full play to the main force, speed up loans for small and medium enterprises, lead and drive the banking industry to further strengthen services for small and micro enterprises, provide better financial support for resuming work and provide more support for the resumption of production, and help to do well in the work of "six stability".