Till now, the economy has been gradually backed on track, but there are still some special difficulties for business operations facing by micro and small-sized enterprises. For the purpose of helping them to survive, due financial supports would be enhanced for the real economy.
Certain incentives would be given for legal person local banks which provide phased deferment of loan principal and interest repayment for micro and small-sized enterprises, and there would also be favorable supporting funds for the legal person local banks that providing inclusive credit loan for micro and small-sized enterprises.
Firstly, if the deferred period of loan principal and interest repayment is not less than 6 months, the incentive shall be 1% of the loan capital. The policy shall be constant, stable and continuable, and shall be able to stimulate vitality of market entities.
Secondly, the implement period of the supporting plan of inclusive credit loan for micro and small-sized enterprises shall be duly extended. For the compliant legal person local banks, there would be 40% of the loan capital as a favorable supporting fund.
These two policies made by the Executive Meeting of the State Council would be continue to execute and accordingly extend the period in order to help micro and small-sized enterprises to better handle oversea and domestic changes of environment and recover their stable businesses and operations.
If you want to read the complete article, you can refer to the below link (in Chinese only): http://www.shanghaiinvest.com/cn/viewfile.php?id=15629
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Mr. Mike Chang (Partner)