East China’s Jiangsu province has unveiled a document several policies to promote high-quality financial services for private enterprises in a bid to tackle the difficulty and cost of financing that has always been the bottleneck restricting the development of private enterprises, especially small and micro enterprises.
Spearheaded by the provincial re-guarantee group, Jiangsu will strive to launch a province-wide financial guarantee system, according to the document.
The province will establish a pool of provincial-level financing guarantee loan risk compensation funds, and arrange annual funds of not less than 300 million yuan for dynamic compensation so as to promote the financing guarantee institutions within the system to undertake the financing guarantee responsibility of providing 50 billion yuan for small and medium-sized enterprises and private enterprises within 3 years.
At the same time, Jiangsu will encourage the establishment of credit guarantee funds for local small and medium-sized enterprise so as to help financial institutions to increase the risk sharing ratio and loan cooperation quota.
The finance authorities at all levels should also focus on subsidizing appropriate guarantee fees for small and micro enterprises and guarantee businesses for agriculture and rural development that meet the requirements, and increase the positive incentives.
In order to enhance the trust between banks and enterprises, Jiangsu will rely on the national and provincial big data sharing exchange platform to open up provincial-level enterprise credit information platform and enterprise credit data sharing in the fields of industrial credit, municipal supervision, taxation, science and technology, and intellectual property so as to ensure that the initial loan rate of small and micro enterprises will be increased to more than 5%.
In addition, the province will develop intellectual property rights, equity, warehouse receipts and other pledge loan business, explore the establishment of "loan + insurance + financial risk compensation" patent pledge financing model, and innovate more private enterprise credit product services.
