Government's effort to solve financing problems of SMEs
2011-July-4 Source: english.gz.gov.cn
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In order to solve the fundraising challenges of SMEs,on June 29 the Guangzhou Financial Guarantee Center, , signed cooperative agreements with 12 financing guarantee companies, 2 banks and Guangdong Financing Double-guarantee Co., LTD. These fiscal arrangements are expected to give much needed financial "backing" to guarantee companies. The credit rating could be enhanced by sharing the risks and the guarantee scale can thereby be enlarged.

Jiang Rihua, the director of the Guangzhou Financial Guarantee Center, said after signing these supportive agreements with the guarantee companies, banks and other agencies, that such centralized support is designed to help guarantee companies spread risks by 15% to 20%. With this in place the guarantee companies can then with more confidence spread their funds further, thus facilitating their funds being spread more, to ease financing problems of SMEs. What's more, through the examination and approval process, the Guangzhou Financial Guarantee Center will control the rate of the guarantee companies to less than 3% and the guarantee fee of SMEs will be reduced, too.

(Translated by Guangzhou Association of Foreign Affairs Translators)

Editor: Olivia
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