Beijing Mandates Lending Rates of under 1.6% for Enterprises Contributing to Coronavirus Containment

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China’s State Council has called for banks to provide loans with rates of under 1.6% to those enterprises that provide goods and services that contribute to efforts to contain the coronavirus.

Premier Li Keqiang convened a meeting of the Standing Committee of the State Council on 5 February, which flagged the launch of a further raft of fiscal and finance policies to aid efforts to combat the coronavirus.

The meeting confirmed that Beijing would provide “support to banks in providing loans with preferential rates to key enterprises…that produce, transport or sell key medical provisions and daily necessities,” and that it would seek to ensure that the rates for such loans remain under 1.6%.

The Chinese government will also provide one-time tax deductions starting from 1 January for enterprises that produce key supplies and provide public transportation, health services or express mail services.

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