East China’s Jiangsu province has unveiled 42 pro-active financial policies to spur economic recovery by increasing fiscal and tax support for enterprises, and reducing the burden of enterprises. Let’s take a close look.
In recent years, affected by many unexpected factors at home and abroad brought about by the COVID-19, the development of the real economy faces many challenges. At the beginning of the new year, Jiangsu unveiled specific financial support plans by focusing on the weak links in the development of the current real economy and targeting industries and enterprises that were greatly affected by the epidemic.
In particular, Jiangsu has increased its support for small and medium-sized enterprises. For example, it has set up a special fund loan of 10 billion yuan to support the development of small and medium-sized enterprises, increase production and increase efficiency, and promote banking institutions to release credit loans of 250 billion yuan for small and medium-sized enterprises based on enterprise credit information.
In view of the difficulty of mortgage guarantee for small and medium-sized enterprises, Jiangsu will issue more credit loans by using data such as the transaction flow of small and medium-sized enterprises and individual businesses, operating house leasing and relevant credit information.
"Our new policy focuses on the difficulties of small and medium-sized enterprises, and accurately proposes financial support measures such as expanding the provision of inclusive small and medium-sized credit, and reasonably reducing financing costs. In the meantime, we guide financial institutions to take the initiative to connect with small and micro market entities, innovate and optimize service methods, and promote inclusive small and micro market entities to truly enjoy policy dividends through direct incentives," said Li Jun, Director of the Currency and Credit Management Division of the People's Bank of China Nanjing Branch.
In addition, Jiangsu will make every possible effort in the fields of green and low-carbon, scientific and technological innovation, transportation and logistics security, further simplify procedures, reduce interest rates, provide low interest rate financial support for market entities, effectively reduce the pressure on market entities, and enhance development confidence.
"We will increase our financial support in the above fields in order to meet the policy requirements of the Party Central Committee and the State Council, and accelerate the construction of the modern industrial system in the province for the high-quality development of Jiangsu. Next, we will urge financial institutions to continue to increase financial supply, optimize financial services, maintain financial support, and spare no effort to promote the overall improvement of the province’s economic operation," said Chen Shi, Deputy Director of the Currency and Credit Management Division of the People's Bank of China Nanjing Branch.
