Taizhou bails out small, epidemic-hit micro-sized foreign trade enterprises

chinadaily.com.cn | Updated: 2020-04-01

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The Taizhou branch of the China Banking Insurance Regulatory Commission recently rolls out 10 measures to help small and micro-sized foreign trade enterprises overcome difficulties caused by the epidemic. [Photo/WeChat account: tzfb001]

The Taizhou branch of the China Banking Insurance Regulatory Commission recently rolled out 10 measures to help small and micro-sized foreign trade enterprises overcome difficulties caused by the epidemic.

The measures include increasing credit support and broadening financing channels.

Taizhou Ruyuan Industry and Trade Co Ltd mainly sells plastic products such as Christmas trees and holiday lights.

Due to the epidemic, the company suffered from a drastic drop in orders from overseas and difficulties in recruiting workers. 

After getting to know the company's financing demands, Jiaojiang Rural Commercial Bank provided the company with 30 million yuan ($4.34 million) in loans. The low interest rate is expected to save it more than 100,000 yuan annually.

In addition to offering loans with low interest rates, the Taizhou branch of the Bank of Communications has also exempted foreign trade enterprises from remittance charges. 

Meanwhile, the local authorities have moved to expand the coverage of export credit insurance for foreign trade enterprises.

Export credit insurance (ECI) protects an exporter of products and services against the risk of non-payment by a foreign buyer. In other words, ECI significantly reduces the payment risks associated with doing business internationally by giving the exporter conditional assurance that payment will be made if the foreign buyer is unable to pay. 

"Ninety percent of our orders come from abroad, which have been reduced and delayed a lot since the outbreak, " said Chen Fangfang, manager of Jiaojiang Baisen Machinery Co Ltd, "With ECI, we feel more assured." 

As of March 27, banks in Taizhou had issued a total of 82.363 billion yuan in loans to enterprises affected by the epidemic across the city. 

The multiple approaches taken by local authorities to reduce financing costs have saved enterprises 673 million yuan in total. 

The city's insurance institutions have provided 37.5 billion of insurance for 16,000 enterprises, and offered 66.58 million yuan in subsidies through preferential policies.