Linyi launches fiscal policies to promote work resumption

Since the outbreak of the COVID-19, the financial department of Linyi City has formulated and implemented more than 20 fiscal policies and measures together with relevant provincial departments, to support enterprises to resume work and production as well as stabilize the foreign trade and investment in Shandong.

To strengthen the supply of materials for epidemic prevention and control, Linyi gives 50% discount to the special re-loan interest rate of the People's Bank of China for key provincial designated enterprises while implementing the national policy of loan with discounted interest for key enterprises in the prevention and control of the epidemic. At the same time, Shandong will subsidize the 3.95 million disposable surgical masks imported during the period from Feb. 19 to 29, 2020 for the part above the domestic market price.

In terms of helping enterprises to alleviate the capital pressure, Linyi adopts the loan risk compensation policy. Shandong provincial risk compensation fund will compensate 30 percent of the loan principal for the working capital loans and loans for technical transformation that are recognized as non-performing loans lent by financial institutions to micro- and small-sized enterprises from Jan. 1, 2020 to the end of the epidemic.

Shandong has also increased the support of guaranteed loans for entrepreneurship. The provincial finance provides discounted loans for qualified individual loans of no more than 150,000 yuan and loans to micro and small enterprises of no more than three million yuan.

According to official data, to stabilize the city's foreign trade and investment, Linyi encourages enterprises to expand the international market, implements the fiscal subsidy policy of export credit insurance, fully subsidizes the booth fees of key overseas exhibitions of enterprises, increases the support of import discount interest, rolls out incentive policies to encourage cities to attract foreign businesses and investment via various channels.

Linyi also launches new regulations to mobilize cities to resume work and production, and rewards cities that have performed well in work resumption, operation, capital guarantee, transportation guarantee, etc.