China will extend two virus relief measures that were set to expire by the end of this year to provide continued financing support to small and micro businesses, according to the country’s cabinet, reported Caixin.
The policies to be extended will provide new loans or roll over maturing loans to small businesses to help them maintain stable recovery trajectories amid a changing internal and external environment, the State Council said at a Monday meeting chaired by Premier Li Keqiang.
Wen Bin, chief analyst at Minsheng Bank, said the decision reflected policymakers’ efforts to maintain continuity and stability of the macroeconomic policies. Although China’s economy has rebounded from the pandemic since the second quarter, small businesses in some industries still need further financial support to consolidate recovery, Wen said, reported Caixin.
In one program, the central bank promised to provide as much as RMB 40 billion ($6.1 billion) to encourage regional banks to roll over loans for small businesses with credit lines of less than RMB 10 million. The other program consists of a RMB 400 billion relending quota to buy unsecured loans extended to micro companies by qualified local banks.