(Bloomberg) -- China will extend financial relief measures for small and micro businesses, the Ministry of Finance said in a statement.
Provinces and regions will be encouraged to lower loan guarantee costs for these enterprises, including by cutting the guarantee rate to 1.5% or below, the ministry said in the statement posted on its website on Saturday. The extension will run from this year to 2023, it said, extending the previous plan that was in place from 2018 until 2020.
READ: China's New Tax Cuts Add to Local Governments' Funding Woes
The central government will continue to use its special fund for small and micro business development to support regions that expand the amount they provide in financing guarantees and lower rates for small and micro businesses. The policy will focus on support for the mid-west regions of the country, it said.
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