Government rushes financial support for firms retaining staff
The State Council, China’s cabinet, said on Wednesday that the government will return 50 percent of the unemployment insurance fees from the previous year to firms that are under financial strain yet refuse to lay off their employees, as part of the measures to prioritize steady employment.
The batch of new measures are aimed at offering more financial support to businesses and intensive training courses for workers amid increasing downward pressure on the economy, the State Council said in a statement on its website on Wendesday .
Firms that are experiencing tem- porary cash flow problems, and those which have a promising future will be able to get more refunds from the government, reads the statement.
The national guarantee fund will offer guarantees for small businesses when it comes to securing bank loans, the government said, in a bid to guide more financial resources to support job creation in the real economy.
China set up the national guarantee fund to encourage more lending to small firms and farmers in September with initial funding of more than 60 billion yuan ($8.73 billion), backed by the central government with support from the country’s financial institutions.
According to the statement, business start-ups will also be in line for more support as a way to boost employment. Individuals can apply for a guaranteed loan of up to 150,000 yuan, and micro and small start-ups can apply for a loan of up to 3 million yuan.
Needy unemployed people will be provided with allowances or relief on a temporary basis.