Small businesses given loan extension boost

1.3tn yuan deal aimed to help SME sector rebuild after coronavirus fallout

by Nadeem Xu
Small businesses given loan extension boost

(ATF) China’s financial institutions have extended the repayment of principal and interest on loans of 1.3 trillion yuan ($183 billion) for small businesses to between January 25 and May 15, said the China Banking and Insurance Regulatory Commission (CBIRC).

Banks have also provided re-lending funds of 1.9 trillion yuan to micro-, small- and medium-sized companies hurt by the Covid-19 outbreak, according to a statement issued by the CBIRC.

In a bid to help small businesses, China has adopted a slew of new measures to reduce financing costs, such as letting them delay the repayment of principal and interest as well as encouraging lenders to increase credit lines.

In the next step, lenders across the country will allow small businesses to further delay the repayment of principal and interest and provide them with more comprehensive and targeted financial services, the statement said. back in the future.