MOF Arranges for This Year's Management of Special Central Financial Funds for the Development of Inclusive Finance

The Ministry of Finance ("MOF") has recently issued the Circular on Ensuring Effective Management of Special Central Financial Funds for the Development of Inclusive Finance in 2019 (the "Circular"), immediately effectively from the date of issuance.

The Circular provides clarity on actions in three respects which include "enhancing substantial effects of policies" and "making sure the sound connection between policies". Among others, the Circular calls for more preferential policies for interest discount for startup guarantee loans and for incentives and subsidies, adding that efforts shall be made to launch the employment priority strategy and adopt more positive employment policies and ensure employment-related targets and tasks and employment situations constantly remain stable in the current and subsequent periods. For startup guarantee loans offered to individuals that are financed by the central finance with interest discounts, the maximum amount has been raised from CNY100,000 to CNY150,000 since November 16, 2018; and as for startup guarantee loans with discounted interest, granted to small and micro businesses, the upper limit has been increased from CNY2 million to CNY3 million since the same time point. Furthermore, the Circular clarifies that purposes for which the central financial funds are used will be adjusted from 2019, adding that the reward policy for the growth in agriculture-related loans issued by financial institutions in counties will not be applicable any longer, and no funds will be allocated for incentives instead of subsidies offered to projects under the public-private-partnership (PPP) mode.



(Source: http://jrs.mof.gov.cn/zhengwuxinxi/gongzuotongzhi/201903/t20190308_3186626.html)

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