Xinhua News Agency, Beijing, March 24 In an effort to maintain financial support for small and micro businesses, a State Council executive meeting on Thursday decided to extend Pratt & Whitney’s loan repayment policy and credit loan support plan to the end of this year.
Last year since the implementation of support small micro enterprise two direct monetary policy tools, namely to the local legal person bank for pratt & Whitney small micro enterprise loan extended servicing for motivation, for its small micro credit loan offer financial support, to help small businesses cross the difficulties, employment and people’s livelihood, steady economic base has played an important role.
Zeng Gang, deputy director of the National Finance and Development Laboratory, said that the two direct monetary policy tools have effectively supported many small and micro enterprises to weather the difficulties and promote the continuous recovery of economic operation. However, some small and micro enterprises are still facing certain operating pressure, and it is necessary to appropriately extend the two direct monetary policy tools.
In order to ensure the small micro enterprise financing is more convenience, the comprehensive stability has reduced the cost of financing, the meeting decided that in the early has two direct continued implementation of monetary policy instruments to the first quarter of this year, on the basis of further extend implementation period by the end of this year, for small micro enterprise to make the support, better play to their important role in stabilizing employment.
Wen Bin, chief researcher at China Minsheng Bank, said local banks can play an important role in serving small and micro businesses, but some local banks are under pressure from capital costs and need to provide incentives and preferential support through monetary policy tools to improve their ability and enthusiasm to support small and micro businesses.
The meeting decided that, first, for the small and micro business loans due before the end of 2021, the enterprises and banks will independently negotiate to extend the repayment of principal and interest, and continue to give incentives to local legal person banks to extend the repayment of principal and interest according to the regulations, the incentive ratio is 1% of the loan principal. Second, we will extend small and micro credit loans to qualified local legal person banks, and continue to provide preferential capital support of 40% of the principal. At the same time, we will study ways to increase policy support for individual businesses.
Zeng Gang believes that further strengthening of policy support can help small and micro businesses to obtain a longer buffer period, and accurately support financial institutions to serve the real economy, which is conducive to promoting economic stability, stability and long-term development.