Gov­ern­ment rushes fi­nan­cial sup­port for firms re­tain­ing staff

Global Times US Edition - - BIZUPDATE -

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.

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