SMEs Can Defer Maturing Loans Until Mid-2023

Private and small companies temporarily affected by the Covid-19 epidemic are allowed to extend loan repayments due in Q4 to mid-2023, Yicai.com reported citing a document released by the central bank and five other departments on Monday. The repayment of principal and interest can be extended up to June 30, 2023, with normal interest rates to apply without penalty. The support is expected to see SME loans maintain a high growth rate above 25% by year-end, accelerating from the 24.6% growth at the end of Q3, Yicai said citing Wang Qing, chief analyst with Golden Credit Rating. This is the fifth time regulators have deferred repayments for SMEs since 2020, playing an important role in helping SMEs avoid a cash crunch, the newspaper added.