21 September 2018

Guangdong trials small loans with overseas guarantee, paper says

Guangdong province has started a pilot scheme that allows domestic firms to secure small loans or credit lines from local financial institutions by providing guarantees from overseas entities, People’s Daily reported Monday, citing the provincial foreign exchange regulator. Such loans won’t need to be registered as foreign debt nor be counted under the short-term foreign loan quota, unlike the situation earlier, the report said. However, a company can apply for no more than 50 million yuan (US$8.19 million) loan under the program.

– Contact HKEJ at [email protected]



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