(Fighting New Coronary Pneumonia) China's Five Departments: Temporary Deferred Repayment of Interest and Interest on Loans to SMEs
China News Service, Beijing, March 1 (Reporter Wang Enbo) The China Banking and Insurance Regulatory Commission, the People's Bank of China, the National Development and Reform Commission, the Ministry of Industry and Information Technology, and the Ministry of Finance jointly issued and issued the "Temporary Implementation of Loans for Small, Medium and Micro Enterprises." The Notice of Delayed Repayment of Principals and Interests "provided relief to small, medium and micro enterprises trapped by the epidemic.
The head of the relevant departments of the China Banking Regulatory Commission said on March 1 that due to the epidemic, many companies have resumed work and resumed production and postponed production. The operating rate of small and medium-sized micro-enterprises is insufficient, and cash flow income has decreased sharply. The liquidity pressure needs to be relieved urgently. It is necessary to further increase Intensified financial support and promulgated targeted assistance policies. Implementing temporary deferred repayment of principal and interest on loans to small, medium and micro enterprises will help alleviate financial pressure and liquidity pressures on enterprises, and give enterprises a buffer period, which will help enterprises resume work and resume production as soon as possible, and support the real economy's recovery and development.
The "Notice" requires that the principal of loans for difficult small, medium and micro enterprises (including small and micro business owners, individual industrial and commercial enterprises) due since January 25, 2020, and small, medium and micro enterprises from January 25 to June 30, 2020 For the loan interest to be paid, the banking financial institution shall, according to the application of the enterprise, grant temporary repayment arrangements for the principal and interest for a certain period of time. The principal and interest payment date can be extended up to June 30, 2020, without penalty interest. For a small number of small, medium and micro enterprises that have been severely affected by the epidemic, have a long recovery period and have good development prospects, banking financial institutions can negotiate with the enterprise to determine additional extension arrangements based on the actual situation.
For Hubei, special arrangements are made in the Notice. The first is to expand policy coverage. Various enterprises (including large enterprises) in Hubei can enjoy the temporary deferred loan repayment policy. The second is to give special support. Banking financial institutions should equip Hubei with special credit scales, implement preferential pricing for internal capital transfers, and strive to reduce the comprehensive financing cost of inclusive small and micro enterprises by more than 1 percentage point from the previous year's average level.
The "Notice" also pointed out that it will provide supporting support from the aspects of supervision, monetary and fiscal policies. For the implementation of temporary deferred repayment of principal and interest loans, we should adhere to the judgment of substantial risks, do not reduce the risk classification of loans due to epidemic factors, and do not affect corporate credit records.
Regarding the risks that may occur during the implementation of the policy, the aforementioned person in charge stated that banking financial institutions should improve the use of anti-fraud models and promote joint prevention of information sharing. Once any illegal or illegal behavior such as fraud is discovered, financing support should be stopped immediately, and moral hazards should be effectively prevented and controlled through disciplinary measures such as credit reporting and litigation. (Finish)