China to Extend Inclusive Loan Repayment Extension Policies and Small Business Credit Loan Support Program, with a view to maintaining key economic indicators within appropriate range, maintaining continuity, stability and sustainability. policies, to stimulate the vitality of market players and anchor market expectations, the executive meeting of the State Council chaired by Prime Minister Li Keqiang decided on Monday.
The relevant departments have designed two monetary policy tools this year, with the aim of channeling intensified and direct support to the real economy and helping businesses overcome their difficulties.
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That is, the loan extension that encourages local banks (i.e. urban and rural commercial banks and rural credit unions) to temporarily delay repayment of inclusive small business loans with incentives in place , and inclusive credit lending that provides local banks with concessional financial support, the Xinhua News Agency reported.
The implementation of the aforementioned policy tools combined has achieved remarkable results, benefiting more than 3.1 million smaller market entities and playing a positive role in reducing financial pressure on companies, guaranteeing entities market and job security.
“This year, the Chinese economy is able to register positive growth. This is due to the increased support of financial institutions for micro, small and medium enterprises,” said Mr. Li. “The Central Economic Work Conference has stressed that the necessary support for economic recovery must be sustained, with well calibrated and more effective political operations. “
Participants at Monday’s meeting agreed that the economy is gradually returning to normal and requires continued efforts to help address the pressing concerns companies face regarding their production and operation, and to ensure a transition and adjustment. appropriate policies.
It was decided at the meeting that the policy of provisional deferral for principal repayment and interest payment on inclusive small business loans would continue to be implemented in the first quarter of next year, and that repayment of loans would be extended within an appropriate time frame. Inclusive loans granted to micro and small enterprises will be extended as much as possible in accordance with market principles and after consultation between enterprises and banks.
Incentives will be put in place for local banks that offer inclusive loans to micro and small businesses with a deferred repayment period of at least six months. The incentives will remain at 1 percent of the loan principal.
The meeting participants also decided that the inclusive credit support program will be extended from the end of this year, if necessary. Concessional financial support of up to 40 percent of the loan principal will continue to be provided to local banks eligible for the issuance of inclusive credit loans to micro and small enterprises.
“The implementation and appropriate extension of the direct benefit monetary policy tools mentioned above will help small and micro enterprises to better respond to domestic and foreign changes and achieve a stable recovery of production and operation, ”Li said.
The story was taken from a news agency