One of China’s big six state-owned lenders has provided a swathe of loan repayment deferrals to micro and small enterprises (MSE) amidst efforts by Beijing to stymie the economic impacts of the COVID-19 pandemic.
Postal Savings Bank of China (PSBC) said that since the COVID-19 outbreak it had provided deferrals on principal and interest repayments for loans made to over 20,000 MSE’s, in response to calls from the Chinese central government.
PSBC said that in future it would “provide maximum extensions where warranted” for financial inclusion MSE loans in accordance with policy arrangements, in order to ease pressure on MSE customers and help to support employment stability for businesses.
As of the end of May PSBC’s financial inclusion MSE loans stood at 14% of all its lending.
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