The executive meeting of the State Council decided to encourage financial institutions to grant temporary deferred repayment of principal and interest arrangements for loans to small and medium-sized enterprises and to add new loans at preferential interest rates.
Li Keqiang presides over the State Council executive meeting
Introduce measures to encourage employment of college graduates and migrant workers
Determine to encourage financial institutions to provide temporary deferred debt service arrangements for loans to small and medium-sized enterprises and add new loans at preferential interest rates.
Deploy more support for individual businesses to help mitigate the impact of the epidemic
Premier Li Keqiang of the State Council presided over an executive meeting of the State Council on February 25 to introduce measures to encourage the employment of college graduates and migrant workers; determined to encourage financial institutions to grant temporary deferred repayment of principal and interest arrangements for loans to small, medium and micro enterprises, and added new preferential interest rates Loans; deployment of increased support for individual industrial and commercial households to help alleviate the impact of the epidemic.
The meeting pointed out that it is necessary to conscientiously implement the spirit of General Secretary Xi Jinping's important speech, in accordance with the deployment of the Party Central Committee and the State Council, to promote epidemic prevention and control and economic and social development, strengthen the "six stability" measures, expand effective domestic demand, and strive to achieve the annual development goals and tasks. At present, we should pay more attention to stable employment, especially the employment of key groups such as college graduates and migrant workers. First, it is necessary to expand the enrollment and upgrading scale of postgraduates this year, increase the recruitment scale of primary medical care, social services and other posts, and increase support for small and micro enterprises to absorb college graduates. Second, employers should be guided to postpone the interview and admission time, and to postpone the registration and settlement of late graduates. Provide 2-year household registration and file custody for unemployed college graduates, and go through employment procedures according to the status of fresh graduates. Third, we must actively expand the employment of migrant workers. Increase job stabilization and employment subsidies. Broaden the channels of local and nearby employment. A new batch of projects with strong employment ability. Major construction projects and work-for-relief projects give priority to absorbing poor labor.
The meeting identified measures to increase financial support for small, medium and micro enterprises to resume work and production in accordance with the principles of marketization and rule of law. First, financial institutions are encouraged to grant temporary deferred repayment arrangements for the principal of loans to micro, small and medium-sized enterprises, including individual industrial and commercial households, that meet the conditions and encounter temporary liquidity difficulties, based on the application of enterprises, with interest payments deferred until June 30 and free of penalty interest. All kinds of enterprises in Hubei Province can enjoy the above policy. The second is to increase the amount of refinancing and rediscounting by 500 billion yuan, focusing on small and medium-sized banks to increase credit support for small and medium-sized enterprises. At the same time, the interest rate on agricultural and small-scale refinancing was cut by 0.25 percentage points to 2.5 percent. By the end of June, local corporate banks will be allowed to apply for refinancing funds in equal amounts for new loans to small and micro enterprises that are not higher than the quoted interest rate in the loan market plus 50 basis points. Encourage and guide national commercial banks to increase credit to small and micro enterprises, and strive to make small and micro loan interest rates significantly lower than the previous year. Large state-owned banks in the first half of the inclusive small micro-enterprise loan balance year-on-year growth rate to strive for not less than 30%. The policy bank will increase the special credit line of 350 billion yuan to be issued to private, small and medium-sized enterprises at preferential interest rates.
The meeting pointed out that supporting the relief of more than 8000 million individual industrial and commercial households that have absorbed more than 0.2 billion jobs is conducive to stabilizing the livelihoods of hundreds of millions of families. In order to support the majority of individual industrial and commercial households in the prevention and control of the epidemic at the same time to speed up the resumption of work, the meeting determined that, first, from March 1 to the end of May, small-scale taxpayers in Hubei Province, exempt from VAT, other regions from 3% to 1%. Second, individual industrial and commercial households who participate in the pension, unemployment and work-related injury insurance of enterprise employees according to their units shall enjoy the reduction and exemption policy with reference to small and medium-sized enterprises. Third, to guide financial institutions to increase the issuance of low-interest loans, targeted support for individual industrial and commercial households. Fourth, we will effectively implement the policy of further reducing industrial and commercial electricity prices by 5% in addition to high energy-consuming industries. Fifth, all localities are encouraged to support the lessor to reduce the rent of property for individual industrial and commercial households through the reduction or exemption of urban land use tax.
Information source: China Government website
