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(Economic Observation) Millions of small and micro enterprises benefited from China’s financial relief, “timely rain” keeps coming
China News Service, Beijing, December 22 (Reporter Wang Enbo) Chinese Premier Li Keqiang chaired an executive meeting of the State Council on December 21 and decided to continue with the policy of deferred interest and principal payment of loans for small and inclusive microenterprises and the credit loan support plan. This means that under the epidemic, the financial aid policy that has benefited millions of micro and small businesses is “timely rain” and will continue to fall.
In order to increase financial support for the real economy this year, especially to help small and micro enterprises overcome difficulties, the relevant Chinese authorities have introduced two direct monetary policy tools: the implementation of inclusive loans for small and micro enterprises. for local corporate banks to defer principal and loan repayment. Provide certain incentives to local corporate banks to grant inclusive credit loans to small and micro enterprises.
The executive meeting of the State Council revealed that the implementation of the policy has achieved significant results, benefiting more than 3.1 million small and micro enterprises, and has played a positive role in alleviating financial pressure on companies and securing employment. of the market entities and residents.
Specifically, in order to alleviate pressure on the capital chain of companies caught by the epidemic, the People’s Bank of China, in conjunction with the China Banking and Insurance Regulatory Commission, has issued a policy of deferred repayment of loans. for small, medium and micro enterprises, clarifying that the amortization of loans for small, medium and micro enterprises can be deferred until 2021. On March 31, loans to inclusive small and micro enterprises “should be extended as long as possible” and loans were negotiated and granted to other companies in difficulty.
According to statistics, at the end of September, Chinese banking financial institutions have cumulatively extended the loan principal of 1.89 million market entities and the loan interest of 910,000 market entities, which implies a total of 4.7 trillion yuan (RMB, same below) to Term loan Principal and interest.
Although the current economic operation is gradually returning to normal, the special difficulties faced by the production and operation of small and micro-enterprises still need to be assisted.
The meeting determined that in the first quarter of next year, we will continue to implement the original policy of deferring principal and interest payments for inclusive loans for small and micro businesses. On this basis, the policy period should be adequately extended to ensure that the extension is extended in accordance with the commercialization principle. Determined through independent negotiation with the company. For local corporate banks that handle deferred payment of loans and with a period of no less than 6 months, continue to provide incentives at 1% of the loan principal.
Analysis believes that this measure will continue to reduce pressure on some industries and companies that have been hardest hit by the epidemic, giving them more time to recover.
Another direct monetary policy tool aims to alleviate the financing difficulties of small and micro-enterprises due to the lack of guarantees. According to Liu Guoqiang, deputy governor of the central bank, in order to strengthen the support of local corporate banks for small and micro-enterprises, the central bank has created a program to support credit loans for small and micro-enterprises inclusive, providing 400,000 million yuan of funds and signing credit loans with local corporate banks through special purpose tools. Support plan contracts and provide preferential financial support to local corporate banks.
Against this background, from March to September this year, Chinese bank financial institutions issued a total of 2.3 trillion yuan in inclusive small loans and microcredit, 796.1 billion yuan more than in the same period last year.
The meeting made it clear that the implementation period of the Inclusive Credit Credit Support Program for Small and Micro-enterprises will be adequately extended from the end of this year. For local corporate banks eligible to issue inclusive credit loans to small and micro enterprises, continue to provide preferential financial support to 40% of the loan principal.
Speaking about the need for the aforementioned series of measures, Wen Bin, chief researcher at the Minsheng Bank of China, told reporters that China’s economic growth rate has stabilized and rebounded since the second quarter of this year, and it continued to rebound in the third and fourth quarters, but small and micro-business operations are still under pressure. There will be many unstable and uncertain factors next year, and the basis for the economic recovery is not stable yet. In particular, more support is needed for weak areas, including small and micro enterprises.
In this circumstance, an appropriate extension of the deferred principal and interest payment policy for inclusive loans for small and micro-enterprises will help them to better overcome difficulties, continue to operate steadily, and help further achieve the objective of securing stakeholders. of the market and secure employment. The extension of the Inclusive Credit Support Program for Small and Micro-enterprises will promote the reduction of the cost of financing for small and medium-sized banks, increase the enthusiasm of these banks to support small and micro-enterprises, and reduce the financing costs of small and micro-enterprises. , and you will better solve your financial difficulties and expensive financing. .
Overall, Wen Bin believes that the decision to extend the two direct monetary policy tools at the executive meeting of the State Council reflects the continuity, stability and sustainability of macro-control policies and will help finance better serve the real economy. . (End up)
