China News Service, Beijing, April 7 (Reporter Xia Bin) The People's Bank of China announced on the 7th that it will set up re-loans for technological innovation and technological transformation to encourage and guide financial institutions to increase technological transformation and equipment updates for technology-based small and medium-sized enterprises and key areas. Financial support for the project.
It is reported that the re-loan quota for technological innovation and technological transformation is 500 billion yuan, with an interest rate of 1.75%, a term of 1 year, and can be extended twice, with each extension period of 1 year. The recipients include 21 financial institutions including China Development Bank, policy banks, state-owned commercial banks, Postal Savings Bank of China, and joint-stock commercial banks.
The People's Bank of China stated that the re-loan for technological innovation and technological transformation is a continuation of the original re-loan for technological innovation and special re-loan for equipment upgrading. It will be reformed and improved based on the experience of the two tools to support financial institutions in improving the quality of financial services. Effectively, it can better meet the financing needs in the fields of scientific and technological innovation, technological transformation and equipment renewal.
The People's Bank of China stated that financial institutions shall make independent decisions on whether to grant loans and the conditions for granting loans based on enterprise applications, reference to the list of alternative enterprises and project lists provided by industry authorities, and in accordance with the principle of self-bearing risks. Financial institutions apply to the People's Bank of China for re-loans, and the People's Bank of China will review the loan ledgers and issue re-loans to financial institutions at 60% of the loan principal for loans that meet the requirements in the list of alternative enterprises or projects.
The People's Bank of China believes that the establishment of technological innovation and technological transformation re-lending will help guide financial institutions to make independent decisions and bear their own risks, to small and medium-sized technological enterprises in the start-up and growth stages, as well as digital and intelligent enterprises in key areas. Provide credit support for modernization, high-end and green technological transformation and equipment renewal projects. (over)