To better implement the arrangements of the CPC Central Committee and the State Council on the follow-up support for poverty alleviation relocation, CDB has recently issued the Notice on Increasing Financial Support for the Follow-up Development After Poverty Alleviation Relocation. According to the Notice, CDB will set aside loans for the follow-up development after poverty alleviation relocation and further its efforts in the next five years to provide comprehensive services such as financing and innovation facilitating.
It is reported that CDB will support a range of key areas including developing industrial parks and bringing in enterprises, fostering industries in line with local circumstances, promoting east-west cooperation for targeted poverty reduction, improving industrial infrastructure within the settlements, and providing better public service in these areas. CDB will carry out a differentiated policy where preferential interest rates will be applied to loans issued after 2020 and dedicated to the follow-up development after poverty alleviation relocation. The interest rate is in principle not higher than the LPR of the same period.
CDB’s branches will deepen bank-government cooperation as well as coordination with local development and reform departments in an effort to build risk compensation and governmental financing guarantee mechanisms. This will bring forth the synergy among all parties involved. It is also necessary for CDB to strengthen innovation facilitating services in these settlements, engage in the preparation and implementation of follow-up support plans for these areas, and formulate financial service plans or related financing plans for better realization of high-quality projects.
CDB’s branches will see to it that enterprises nearby the settlement areas resume work and production as soon as possible so they can bring more employment opportunities. They will also cooperate closely with financial institutions such as rural commercial banks and rural credit cooperatives to innovate their financial products since relent loans will play a major part in supporting the production and operation activities among relocated residents. Financial services should be innovated and financing support for various programs be provided without incurring the local government’s hidden debt. Focus should be given to long-term development of the relocated areas and stable employment of the residents and mechanisms be established for balancing the interests of related parties.
Looking ahead, CDB will communicate more effectively with the National Development and Reform Commission and cooperate with its subordinate local commissions to do a better job in promoting typical practices in the financial support for the follow-up development after poverty alleviation relocation, improving financing mechanism for related work, supporting the needs of relocated people, and implementing financial services for such purposes.
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