Economic Daily News-China Economic Net Beijing June 3 News from the China Insurance Regulatory Commission website, with the approval of the State Council, on March 1, 2020, the China Insurance Regulatory Commission and the People's Bank of China and other five ministries and commissions jointly issued a temporary extension of loans for small and medium-sized enterprises. The interest payment policy guides various banking financial institutions to actively meet the needs of enterprises, and grants loans to small and medium-sized enterprises (including small and micro business owners, individual industrial and commercial households, etc.) affected by the epidemic and temporarily experiencing difficulties through extension and renewal of loans. Temporary postponement of principal and interest payment arrangements has made positive progress in related work.
First, the principal and interest extension of loans due to small and medium-sized enterprises reached 1.3 trillion yuan. From January 25 to May 15, 2020, various financial institutions in the banking industry have implemented a deferred arrangement for the principal of 1.28 trillion yuan of small and medium-sized enterprises due loans, involving 750,000 loan households, with a total of 1.578 million loans. At the same time, various banking financial institutions have implemented 55.99 billion yuan of loan interest extension arrangements, involving 579,000 loan households, corresponding to the loan balance of 3.44 trillion yuan.
Second, small and micro enterprises, small and micro business owners and individual industrial and commercial households have a total of 739 thousand loan principals and 571,000 loan interest extended. As of May 15, 2020, the deferred principals of small enterprises, micro enterprises, and small and micro business owners were 543.75 billion yuan, 107.09 billion yuan, and 101.08 billion yuan respectively, involving a total of 432,000 loans, accounting for all the extension 57.6% of the households were returned. The deferred principal of individual industrial and commercial households is 100.64 billion yuan, involving 307,000 loan households, and the number of deferred households ranks first among various enterprises. At the same time, 571,000 small businesses, micro-enterprises, small and micro business owners, and individual industrial and commercial households enjoyed loan deferred interest payment arrangements, with a total deferred interest payment amount of 30 billion yuan.
The third is that more than 40% of small and medium-sized enterprises due for loans are supported by various forms of continuous financing. In order to effectively alleviate the pressure of corporate capital turnover, banking financial institutions have also provided 1.9 trillion yuan of refinancing support to small, medium and micro enterprises through various methods such as repayment of loans and financing, plus the aforementioned temporary deferred repayment of capital. With regard to the arranged loans due, small and medium-sized enterprises have already received more than 40% of the principal of the loans due to enjoy continuous financing support.
In the next step, the Banking and Insurance Regulatory Commission will thoroughly implement the decision-making and deployment of the Party Central Committee and the State Council, continue to improve the policy of loan repayment for small and medium-sized enterprises, and guide banking financial institutions to further extend the loan repayment according to the development trend of the epidemic situation and the operation status of small and medium-sized enterprises. This interest payment period focuses on meeting the loan extension needs of inclusive small and micro enterprises, and provides more comprehensive and accurate financial services for enterprises.