Supplementary Notice on Accelerating the Disbursement of Interest-Subsidized Funds and Strengthening Financial Support for Key Enterprises Ensuring Epidemic Prevention and Control

Financial Office Gold [2020] ]13 Number

Finance Departments (Bureaus) of all provinces, autonomous regions, municipalities directly under the central government, and cities under separate planning; Finance Bureau of the Xinjiang Production and Construction Corps:

　　To better implement the “Emergency Notice on Winning the Battle Against the Epidemic and Strengthening Financial Support for Key Enterprises Providing Essential Epidemic Prevention and Control Services” (Cai Jin [2020] ] 5 Regarding the requirements from the teleconference on strengthening financial support for key enterprises nationwide that are crucial to epidemic prevention and control—specifically, “Localities must act swiftly in accordance with wartime standards and requirements and effectively implement all relevant policies and measures; local finance departments should promptly disburse subsidized interest funds”—we hereby issue the following supplementary notice:

　　First, provincial finance departments, in coordination with relevant authorities, should exercise strict oversight and make precise determinations to ensure that enterprises not engaged in the production and allocation of emergency epidemic prevention and control supplies—and whose loan funds have not been used for capacity expansion and output increase—are excluded from the scope of support. This will guarantee that “the best steel is used where it matters most” and effectively enhance the efficiency of fiscal interest-subsidy funds. It is crucial to prevent cascading, escalating layers of interest subsidies, which could lead to issues such as excessively low or even negative loan interest rates, encouraging arbitrage by enterprises, fostering industry-wide competitive spirals, and causing management chaos.

　　II. To accelerate the disbursement of subsidized interest funds, financial departments at all local levels should strengthen communication with their respective branches of the People's Bank of China and lending banks, keep abreast of the progress in issuing preferential loans in real time, proactively provide on-site services, and publicize the subsidized interest policies. They may adopt a “disburse first, settle later” approach by arranging subsidized interest funds in advance and promptly disbursing them to eligible enterprises, thereby fully supporting these enterprises in expanding their production capacity.

　　3. Provincial finance departments shall, on a monthly basis, compile and publicize through official websites and other channels information on the allocation of subsidized interest funds within their jurisdictions as well as the support provided to enterprises, thereby strengthening positive public opinion guidance and promoting awareness of the policy’s implementation results.

　　4. The provincial finance departments shall, by... 2020 Year 5 Submit a consolidated report to the Ministry of Finance by the 31st of the month to apply for the settlement of subsidized interest funds.

　　V. The provincial finance departments shall, before noon every Friday, compile and report to our Department’s Financial Division the amounts of subsidized interest funds disbursed, the scale of preferential loans supported, and the total number of enterprises supported.

　　Office of the Ministry of Finance

　　2020 Year 3 Month 2 day

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