First question is about the afore-mentioned 300 billion yuan and 500 billion yuan loans. Are there any figures for the current situation of its implementation? The second question is: What are the specific MOF measures or policies being taken to support micro, small, medium-sized enterprises and are there any new measures to effectively stimulate consumption? Thank you.
Yes, there are a few figures. The first is about the 300-billion-yuan specific relending fund, which is mainly used for major companies to fight against the epidemic and ensure supplies such as medical materials. As of March 30, the 300 billion yuan had been disbursed to nine national banks and some corporate banks in 10 key provinces and municipalities. A total of 228.9 billion yuan preferential loans had been given to 5,881 major companies, each getting no more than 40-million-yuan loans. The weighted average interest rate was 2.51 percent and after an MOF 50-percent interest subsidy, the companies' actual financing interest rate was about 1.26 percent. That's it for the 300 billion yuan. There is another 500 billion yuan relending and rediscount quota for banks focusing on supporting the orderly resumption of work and production. By March 30, local corporate banks had accumulatively issued 276.8 billion yuan in preferential interest rate loans, including subsidies, which have supported 351,400 enterprises (including rural households). Specifically, the agriculture-related loans were 55.2 billion yuan, with a 4.38-percent weighted average interest rate; inclusive financing for micro and small enterprises stood at 155.6 billion yuan, with a weighted average interest rate of 4.41 percent; and subsidies reached 66.1 billion yuan, with an interest rate of 3.08 percent. These interest rates are in line with the State Council's requirement of no higher than 4.55 percent.
There was an additional 1 trillion yuan of relending and rediscount proposed a few days ago at the 88th meeting of the State Council. It's supposed to go along with the recovery of the real economy and the previous 300 billion yuan and 500 billion yuan policies in case there is a gap between policies. It aims to provide low-cost financing support for small and medium-sized banks through the PBC's relending and rediscount tool. The cost is the same as the previous 500 billion yuan at 2.5 percent. The move can lower the cost of debt for small and medium-sized banks, which accordingly will improve their capacity to deliver profits to micro, small and medium-sized enterprises. For the 1 trillion yuan of relending and rediscount, we will require small and medium-sized banks to issue loans to micro, small and medium-sized enterprises at preferential interest rates, but have not stipulated the interest rate. The maximum rate for the relending of the 500 billion yuan is 4.55 percent. We have other methods such as setting reward assessments to guide the banks to lower their lending rates to these enterprises. There will be no financial subsidies from the Central Government, but according to the utilization of the 500 billion yuan , although the Central Government did not offer subsidies, many local governments did. Thus, we hope local governments can provide interest rate subsidies for the 1 trillion yuan, so that enterprises can enjoy a practical preferential rate. In terms of the timing, we are making plans right now, and we will be able to implement it after the 500 billion yuan runs out. Specific measures will soon be introduced. Thank you.
Since the outbreak of the epidemic, the MOF has attached great importance to the financing of micro and small enterprises, fully supporting them to keep their cash flow intact, and assisting them in overcoming difficulties. From the perspective of fiscal policy, a series of policies have been introduced, including tax cuts and subsidies. According to the plans from the State Council executive meeting on March 31, concentrating on issues such as improving the risk sharing mechanism for loans, encouraging micro,small and medium-sized enterprises to gain trust in commercial insurance products, reducing guarantee rates for government financing and reducing comprehensive financing costs for micro, small and medium-sized enterprises, the MOF will do the job from the three following aspects:
First, the scale of newly added reguarantee business by the national financing guarantee fund should be no less than 400 billion yuan in 2020 and will be required to be invested in 10 prefecture-level financial guarantee institutions that have made notable achievements in supporting agriculture-related and small companies. For loans under one million yuan, the reguarantee fee should be exempted, while for those over 1 million yuan, the fee should be halved.
Second, the government financing guarantee industry is required to halve the fees and reduce the comprehensive financing guarantee rate to less than 1 percent. Meanwhile, newly added business to support agricultural and small companies in 2020 should account for no less than 80 percent of the total.
Third, qualified entrepreneur guaranteed loans will be extended. We will further increase support for more startups and micro and small enterprises, lower the entry threshold and include key sufferers of the epidemic into the scope of support. It is estimated that in 2020, we will increase the list by 1 million individual entrepreneurs and 10,000 micro and small enterprises, with the growth rate increasing by 50 percent over 2019.
Next, the MOF will accelerate the optimization of the discounting policy for entrepreneur guaranteed loans through which more micro and small enterprises will have money to start businesses and easily run their businesses. We will improve guarantee policies and motivate institutions to support small businesses, pool financial resources to support micro and small enterprises, and achieve targeted assistant so that we can work together to help them tide over current difficulties. Thank you.