SMEs to get help with loans
By Maggie Zhang |
March 6, 2010, Saturday
|
Print Edition
Print Edition
CHINA will grant tax incentives and relax regulations to boost credit to small businesses as they are a vital cog in the country's economy, and they also provide most of the jobs.
"We will back credit to small and medium enterprises and improve the credit system for them," Premier Wen Jiabao said in his government report to the National People's Congress in Beijing yesterday.
China encourages the setting-up of a fund to cover bad loans due to credit given to SMEs and will waive the 5 percent business tax on qualified small business credit guarantee companies, Wen said.
China will also simplify the bad loan write-off procedure to encourage more banks to offer lending to SMEs.
Such incentives are among the proposals made by several senior bankers at the Chinese People's Political Consultative Conference, which preceded the NPC session.
Following the central government's call and sensing a huge potential, China Merchants Bank, the Bank of Ningbo and other lenders have set up an independent small credit department to focus on the SME segment.
"We will back credit to small and medium enterprises and improve the credit system for them," Premier Wen Jiabao said in his government report to the National People's Congress in Beijing yesterday.
China encourages the setting-up of a fund to cover bad loans due to credit given to SMEs and will waive the 5 percent business tax on qualified small business credit guarantee companies, Wen said.
China will also simplify the bad loan write-off procedure to encourage more banks to offer lending to SMEs.
Such incentives are among the proposals made by several senior bankers at the Chinese People's Political Consultative Conference, which preceded the NPC session.
Following the central government's call and sensing a huge potential, China Merchants Bank, the Bank of Ningbo and other lenders have set up an independent small credit department to focus on the SME segment.
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