Small Businesses May Defer Repayment of Loan Principal and Interest
11 March 2020
Micro-, small- and medium-sized enterprises with temporary cash flow problems during the coronavirus outbreak will be eligible to provisionally defer loan repayments.
The arrangement covers loan principal repayments for struggling enterprises (including small and micro business owners and individually-owned businesses) that have matured since 25 January 2020.
Banking financial institutions are to grant provisional repayment arrangements, based on requests by enterprises to defer repayment of loan principal. Deferral can be in the form of a loan extension and renewal for a certain period of time, taking into consideration how severely the enterprise has been affected by the Covid-19 outbreak and its business condition. The loan principal payment date may be extended up to 30 June 2020.
Full details can be found in the Circular on Deferring Temporarily the Repayment of Principal and Interests on Loans to Micro, Small and Medium-sized Enterprises (Yin Bao Jian Fa No. 6 ), issued jointly by the China Banking and Insurance Regulatory Commission, People’s Bank of China, National Development and Reform Commission, Ministry of Industry and Information Technology and Ministry of Finance on 2 March 2020.
Source: Ministry of Finance
- Mainland China