| Ministry of Finance: Guarantee Institutions Carrying out Financing Guarantee for Small and Medium Foreign Trade Enterprises will be Subsidized |
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| Thursday,August 27,2009 Posted: 04:01 BJT(2001 GMT) |
| From:Mofcom Article type:Reproduced |
According to Beijing Business News, it is hopeful to solve the difficulties on financing of small and medium foreign trade enterprises. Ministry of Finance recently formulated and issued the Interim Measures on Management of Special Funds for Financing Guarantee of Small and Medium Foreign Trade Enterprise, (hereinafter referred to as “Measures”), which will support the guarantee institutions to expand the financing guarantee business for small and medium foreign trade enterprises; where the guarantee institutions carry out financing guarantee for small and medium sized foreign trade enterprise, they will provide subsidies with no more than 2% of the guarantee amount.
The Measures defines three ways on how to encourage the guarantee institutions to carry out financing guarantee business for small and medium foreign trade enterprise with special funds: first, to encourage the guarantee institutions to provide financing guarantee for small and medium foreign trade enterprises, and subsidize the financing guarantee business carried out by guarantee institutions on small and medium sized foreign trade enterprise with subsidies of no more than 2% of guarantee amount; second, to encourage the guarantee institution to provide low-rate guarantee services, and reward the financing guarantee business of small and medium foreign trade enterprises, whose guarantee rate is lower than 50% of the bank’s benchmark lending rate over the same period, with reward ratio no more than the balance of 50% of benchmark bank lending rate and the actual guarantee rate on the premise of not raising other fees; third, to support the local governments in areas with less developed credit guarantee to fund and establish the guarantee institutions, and give subsidies of no more than 30% of local government’s funding contributions where the financing guarantee business for small and medium foreign trade businesses is carried out. The subsidies used for asset injection to set up the guarantee institutions shall not exceed 30% of the special funds transmitted from central government. |
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