Finance Ministry arranges for massive funds to support SMEs

21 Aug '08

2 min read

An official from the Ministry of Finance, China, revealed on August 19 that the Central Government will further extend its support to the SMEs and will arrange for special funds amounting to Yuan 3.51 billion this year, in order to help them solve their developmental problems and other difficulties.

The Ministry of Finance also asserted that in recent years, the ministry has made provisions for six special funds that includes, the SME Technology Innovation Fund, the SME International Market Development Fund, Agricultural Scientific and Technological Achievements Funds, Special Fund of SME Financing Service System, Special Fund of SME development, and Special Subsidies of SME Development Platform Service system. As such the central authorities made accumulated arrangements of nearly 17 billion yuan for the six special funds.

Statistics availed from the Ministry of Finance shows that in the period 2006-07, the Central Government arranged for 238 million yuan for supporting 266 credit security transations. SMEs credit security business totaled about 70 billion Yuan in 2006, accounting for 22 percent of total credit security business done by companies across the country. In 2007 alone, companies were assisted with aid of 188 million yuan, accounting for 5 percent of the total number of credit security transactions.

Once again, in 2008, the central budget will set aside 200 million yuan to support SME credit guarantee business. In addition, the state will provide three years sales tax exemption on incomes from guarantee operations of non-profit SME's, credit guarantee institutions and re-guarantee agents.

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