Ministry of Finance and three other departments: reduce the overall financing costs for the entrepreneurial group

The Ministry of Finance and three other departments have issued guidance on further leveraging the role of government-backed financing guarantee systems to support employment and entrepreneurship. The guidance proposes to reduce the overall financing costs for entrepreneurs. It encourages eligible regions to explore ways for local government-backed financing guarantee institutions to reduce guarantee fees for qualifying entrepreneurial guarantee loans or to provide incentives by refunding a portion of the guarantee fees to trustworthy clients, based on sustainable operations. This will help promote banks in setting reasonable interest rates for entrepreneurial guarantee loans. For entrepreneurial guarantee loans carried out under the model of sharing losses between banks and guarantee institutions, the National Financing Guarantee Fund will provide differentiated discounts on re-guarantee fees.