In order to carry out General Secretary Xi Jinping’s important instructions and the related decisions and deployments of the CPC Central Committee and the State Council, CDB recently set up a special working capital loan facility to help epidemic-affected enterprises resume work and production as soon as possible, thus bringing stability to enterprises and the economy. The facility consists of 130 billion RMB loans and 5 billion USD loans, and the two figures will be adjusted based on the overall planning and actual progress of and the amount of funds needed for work and production resumption. As of February 20, 2020, 69.9 billion RMB loans under the facility had been granted.
According to CDB, the facility represents the bank’s commitment to minimizing the impact of the coronavirus epidemic by fulfilling the role of development finance in counter-cyclical adjustment, providing financial services to ensure “Six Stabilities,” and sparing no effort to ensure supply of working capital for work and production resumption. The loans will be used for three main purposes: supporting work and production resumption of enterprises engaged in epidemic prevention and control, air transportation, logistics, energy supply, urban and rural operation, and production and distribution of fodder and daily necessities such as medical supplies and food; helping major projects to resume construction as soon as possible; and helping epidemic-affected enterprises engaged in foreign trade and global expansion to resume work and production.
As stressed by CDB, upholding the principles of targeted credit granting and earmarking of funds, the facility will offer favorable terms on the loan rate and credit structure. The bank has set up a green channel to streamline the work flow, accelerate loan evaluation and approval, and improve business efficiency, with a view to addressing enterprises’ lack of short-term funding. Meanwhile, CDB has been conducting the loan business according to applicable laws and regulations and strengthening risk prevention and control at every stage of the business process to ensure that the facility produces concrete outcomes.
It is reported that since the outbreak of the coronavirus epidemic, CDB has been making every effort to provide emergency financial services for the epidemic prevention and control, and has granted a total of 22.8 billion RMB in emergency loans to support production and purchase of much-needed medical protection supplies. The bank has also strengthened its financing support in priority areas such as infrastructure gaps and high-quality development of the manufacturing industry. Since the beginning of 2020, it has granted more than 370 billion RMB loans to the real economy, providing timely, effective and high-quality financial services for achieving the economic and social development goals for 2020 and completing the building of a moderately prosperous society in all respects.
2015 All rights reserved