Photo: Xinhua

Shanghai implemented financial measures on Monday to help small and medium-sized enterprises (SMEs) during the coronavirus (COVID-19) outbreak, which include lowering finance costs, flexible credit policies, and insurance support.

The initiative includes relevant banks to provide preferential interest rate loans to listed epidemic control SMEs with finance expenses under 1.6 percent after interest discounts.

Banks are now encouraged to grant loan extensions, allow for delayed interest repayments, and exempt penalty interest rates for struggling SMEs.

SME credit records whose principal and interest loan repayments have been delayed during the epidemic will not be affected.

COVID-19 will be included with insurance coverage agreements at no extra charge involving production safety responsibilities.  

SMEs in the tourism, transport, logistics, and construction fields, whose businesses were suspended, will receive specific insurance coverage extensions, and also free of charge.

Shanghai will also launch insurance coverage on production resumption and epidemic control to ensure work resumption inside the new Lingang area at the China (Shanghai) Pilot Free Trade Zone. 

The Lingang area management committee will provide 50 percent in insurance premium subsidies.

Shanghai has rolled out almost 30 financial measures to support SMEs since the outbreak started. 

As of March 3, Shanghai banks have issued 35.7 billion yuan in epidemic control- related loans coving 3,049 local enterprises.

According to a February survey conducted by a big data research center at Peking University, among the 2,701 surveyed SMEs in China, nearly 90 percent have faced pressure with operation costs, and nearly 70 percent have reported capital shortages due to COVID-19.