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China allocates 1b yuan to support SMEs financing

(Xinhua)
Updated: 2008-10-30 10:28

China has allocated one billion yuan ($146 million) in credit guarantee for small and mid-sized enterprises (SMEs), said the Ministry of Finance.

This move aimed to ease financing tension of such kind of enterprises, and support their development, according to the ministry on Thursday.

The money will be used to compensate potential losses and risks of financial institutions that provide credit to these enterprises.

The country has allocated 1.8 billion yuan in credit guarantee for small and mid-sized enterprises so far this year.

China strengthened its efforts to spur development of the country's small and mid-sized enterprises this year. The government had allocated 1.9 billion yuan to encourage technical innovation, and increased tax rebates for certain exports to help producers cope with smaller profit margins as a result of slacking market demand.