The government of Wenzhou, the Zhejiang city known for active and developed private economy, has scrapped the cap on interest rates on private financing activities, news portal Sina.com reported Friday, citing government sources. Under previous law, the government would punish private lenders that offer loans with both terms longer than one month and interest rate higher than 48 percent. The new law scraps the ceiling on interest rates. Meanwhile, it also states that government officials and staff from financial institutions are barred from engaging in such activities.
– Contact HKEJ at [email protected]