China boosts tax rating-based credit support for small businesses

Source: Xinhua| 2020-04-07 19:39:34|Editor: huaxia

BEIJING, April 7 (Xinhua) -- China's tax and banking regulators are enhancing coordination to boost credit support for small and micro businesses amid the novel coronavirus disease (COVID-19) outbreak.

Lenders will help firms with eligible tax payment ratings ease financial strains in resuming work and production, according to a recent circular jointly released by the State Tax Administration and the China Banking and Insurance Regulatory Commission.

Tax authorities will provide banks with tax-paying information of coronavirus-hit small and micro enterprises to enable targeted credit support.

The circular urged banking institutions to roll out credit products that suit the need of the businesses, expand credit lines, extend terms of loans, and expedite implementation of the temporary policies of granting deferred repayments.

The country will expand the coverage of tax-based credit rating for firms in hard-hit regions like Hubei Province, said the circular.