June 29 2020

China Encourages Financial Institutions to Make 1.5 Trillion Yuan in Interest Concessions

Source: http://www.gov.cn/premier/2020-06/17/content_5520025.htm

Premier Li Keqiang chaired a State Council executive meeting on June 17, 2020. The meeting decided that China will encourage its financial institutions to make interest concessions as appropriate to businesses to help keep economic fundamentals stable and ensure that all fee-cutting measures are fully executed to ease corporate burdens.

The meeting urged stronger efforts to bring down the lending and corporate bond rates, make concessional-rate loans, defer loan repayments for micro, small and medium enterprises, and support the issuance of no-collateral loans to small and micro companies, and reduce fee-charging from banks. These efforts combined are expected to bring benefits amounting to 1.5 trillion yuan to companies of all types this year.