2020-02-05

Inflation Coming? China Reverses Deleveraging Effort Amid Coronavirus Outbreak

China will help companies amid the ongoing shutdown related to the coronavirus outbreak. Many of these policies are a reversal of deleveraging efforts made in the past year or two. They are loosening lending and reversing the crackdown on underpayment of social security. The social security taxes will be repaid later, but how many businesses will take the opportunity to load up on credit?

iFeng: “贷款发工资也只能撑3个月”,挺住!国家出手了
A few days ago, Jia Guolong, chairman of Xibei Catering, said in an interview that public opinion was uproar. This makes people realize that the continuation of the new pneumonia epidemic has an impact on the economy, and many enterprises are being impacted and even facing death and death.

Data from Meizhou Dongpo show that during the Spring Festival, employees paid 8.48 million yuan in salaries and paid 2.2 million yuan to employees. In terms of rent, although the current business has fallen by 80% to 90%, it is necessary to pay more than 14 million yuan in monthly rent for storefronts and employee dormitories. Due to the sudden outbreak, the expenditure on disinfection facilities such as masks, disinfectants, thermometers, alcohol, and protective clothing has been about 380,000 yuan, and this cost is still ongoing.
Country acts! Send charcoal to SMEs in the snow

Small and medium-sized enterprises are the main force for absorbing employment, which is essential for stable economic growth. Faced with the pressure of small and medium-sized enterprises due to the epidemic, from the national ministries to local governments, a series of policies to support small and medium-sized enterprises with a gold content have been introduced to provide them with coal in the snow and help small and medium-sized enterprises to overcome difficulties.

——Increase financing support, repayment difficulties can be extended

On February 1, the central bank and other five departments issued the "Notice on Further Strengthening Financial Support for Prevention and Control of New Coronavirus Infection and Pneumonia Epidemic", which clearly stated that-

Those who have been severely affected by the epidemic situation may find it difficult to repay at maturity, they may be extended or renewed. Through appropriate reduction of loan interest rates, increase of credit loans, and long-term and medium-term loans, we will support relevant enterprises to overcome the impact of the epidemic disaster.

——Do not blindly draw down loans, cut off loans, or press loans

The above notification requirements require that the industries affected by the epidemic, such as wholesale and retail, accommodation, catering, logistics, transportation, and cultural tourism, as well as enterprises that have development prospects but are temporarily affected by the impact of the epidemic, especially small and micro enterprises, must not draw loans blindly. , Broken loans, pressure loans.

—— Give priority to support when applying for a business guarantee loan

The Ministry of Finance issued the "Notice on Supporting Financial Strengthening Services to Do a Good Job in the Prevention and Control of Epidemic Situation of New Coronavirus Infection and Pneumonia." Work with relevant parties to give priority to their support when applying for a business guarantee loan.

——Extended the tax declaration period in February

The State Administration of Taxation has recently issued a notice to extend the tax declaration period for February to February 24 nationwide; it can be appropriately extended for areas with severe epidemics, such as Hubei, as appropriate; and taxpayers who still have difficulty in reporting due to the impact On this basis, you can apply for further extension according to law.

——Allow enterprises to delay payment of social security

The General Office of the Ministry of Human Resources and Social Security issued the "Notice on Effectively Doing Social Insurance Management during the Period of Prevention and Control of Pneumonia of New Coronavirus Infection". Due to the impact of the epidemic, employers overdue registration and payment of employee insurance, etc. Businesses should be accepted in time.

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