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Home Economy/Technology

China extends loan support for micro, small businesses

China

The Matters Press by The Matters Press
November 14, 2022
Reading Time: 1 min read
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Coronavirus hits hard as China records 811 deaths

China has stepped up support for epidemic-hit small market players by deferring their loan repayments, a circular released by the country’s central bank and five other government departments says.

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The circular said on Monday that the principal and interest repayments on loans given to micro and small enterprises due in the fourth quarter would be extended to June 30, 2023.

The circular said the central bank would make comprehensive use of its monetary policy toolkits to maintain reasonably adequate liquidity in the banking system.

It also said that financial regulators should implement differentiated policies on the tolerance of non-performing loans for small and micro businesses.

The circular also urged government financing guarantee institutions to encourage the extension of guarantee period.

It also advised financing guarantee institutions to continue to provide credit support for enterprises in need.

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