China's Ministry of Finance: Supports Small and Micro Enterprises and "Three Rural" Subjects to Increase Credit
China News Agency, Beijing, April 1st (Reporter Zhao Jianhua) The Ministry of Finance of the People's Republic of China released the news on the 1st, giving full play to the role of government financing guarantees, supporting small and micro enterprises and "three rural" entities to increase financing credibility, helping enterprises resume work, resume production, Go through difficulties.
The Ministry of Finance stated that government-controlled financing guarantees and re-guarantee institutions should actively increase credit for small and micro enterprises and "agricultural, rural, and rural" entities, strive to expand business scale, improve service efficiency, perform compensation obligations in a timely manner, and write off compensation losses in accordance with the law. Coordinating financial institutions to lend as soon as possible, not drawing loans, not oppressing loans, and continuously lending, alleviating the difficulty and expensive financing of small and micro enterprises.
The Ministry of Finance requires that government-level financing guarantee and re-guarantee institutions at all levels must not deviate from their main business to blindly expand their business scope, do not make equity investments in non-financing guarantee institutions, and do not start new government financing platform financing guarantee businesses.
According to the Ministry of Finance, it will promote the national financing guarantee fund to accelerate equity investment, and strive to invest in 10 prefecture-level government financing guarantee institutions with significant results in 2020. Promote the cooperation between the State Financing Guarantee Fund and the banking financial institutions in batches of guaranteed loans, and strive to achieve the target of 400 billion yuan (RMB, the same below) for the new reguarantee business in 2020. The National Financing Guarantee Fund exempts reinsurance fees for guarantee businesses with a single household of 1 million yuan or less from cooperative institutions. In 2020, re-guarantee fees for half-guarantee businesses in a single household are halved.
At the same time, local government financing guarantee and re-guarantee institutions at all levels will halve the financing guarantee and re-guarantee fees for small and micro enterprises in 2020, and strive to reduce the comprehensive financing guarantee rate for small and micro enterprises to less than 1%. Further increase the proportion of supporting small businesses and supporting agriculture, and ensure that the amount of financing guarantees and the number of households for new small and micro enterprises and "agriculture, rural areas, and farmers" will not be less than 80% in 2020. The proportion of the financing guarantee for "agriculture, rural areas and farmers" is not less than 50%.
According to the Ministry of Finance, the central government will continue to implement small and micro enterprise financing guarantee fee reduction and subsidy policies in 2020, and will provide incentives for places with obvious effects such as expanding the scale of small and micro enterprise financing guarantee business and reducing the small and micro enterprise financing guarantee fee rate. Eligible guarantee and re-guarantee institutions can enjoy relevant preferential tax policies in accordance with regulations. (Finish)