The executive meeting of the State Council decides 9 measures of the use of financial support to boost the economic development
【News of Xinhua Agency, Beijing, Dec 3】Today Premier Wen Jiabao presided over an executive meeting of the State Council on the measures of the use of financial support to boost the economic development.
It was pointed out in the meeting that to tackle the global financial crisis and maintain a steady and fast economic growth, positive financial policies and accommodating monetary policies must be implemented and financial support on the economic development must be enhanced. Through the formulation of correspondent policy measures and an innovative system, the commercial banks should be encouraged to give more loans and the risk-resistance capacity of financial institutions should be enhanced to boost the financing and reduce risks by banks, securities and insurances and to bring the role of finance in boosting the economic growth and structural readjustment into a fuller play.
Policy measures of the use of financial support to boost the economic development were decided in the meeting. (I). Appropriate monetary policies should be implemented to boost the steady growth of monetary credit. Multiple measures such as the deposit reserve ratio, interest rate and exchange rate should be used to maintain the full liquidity of the banking system and sufficient supply. 100 billion RMB of loans were supplemented for policy banks in 2008. (II). Credit services should be strengthened and improved to meet the reasonable demand for capital. The local governments are encouraged to enhance their support to credit guarantee companies through various means such as the infusion of capital and risk compensation; loan guarantee fund and institutions for SMEs of multiples levels shall be established to increase the ratio of loans to SMEs; sales tax shall be exempt from eligible SME credit guarantee institutions; a rural credit guarantee system shall be established to enlarge the scope of valid guaranties in the rural area; credit products via different guaranties in the rural areas should be developed; the housing, auto and consumable credit market in the rural area should be enlarged. (III). To fasten the construction of multiple-tier capital market system and bring the role of the market in resource allocation into play. The operation of the stock market should be stabilized, the steady development of the futures market should be promoted, bond issuance should be scaled up, and the bond-issuance related to the infrastructure, projects related to people’s livelihood, the construction of the ecological environment and the reconstruction of the quake-hit area should be prioritized. (IV). The role of security and financing in insurance should be brought into play to boost the stable operation of the society. Insurance portfolio related to the agriculture, farmers and the rural area, housing, auto consumption, health and pension should be developed vigorously. The insurance companies should be steered to invest in infrastructure such as transport, telecommunication, energy and rural infrastructure projects via various means such as the claimable assets. (V). The financing modes should be innovated. The financing channels of enterprises should be broadened through various means such as acquisition, loans, property trust fund, equity investment fund and the regulated development of non-governmental financing. (VI). The administration of foreign exchanges should be improved to facilitate the trade the investment. The exchange settlement ratio of the sales advances of enterprises should be increased to facilitate the financing of enterprises, especially SMEs, improve the efficiency of the utilization of foreign exchanges and support the development of foreign trade. (VII). To fasten the modernization of financing services and to improve the level of financing services. To enrich the means of payment, enlarge the scope of government subsidies in agriculture and disaster-relieving, optimize the tax refund procedures and boost the construction of the credit system for SMEs and the rural area. (VIII). To enhance the financial and tax support, make the most use of the leverage of financial fund, and enhance the capacity of the financial section in reducing bad assets and boosting the economic growth. (IX). To deepen the financial reform, improve the financial monitoring system, strengthen the risk monitoring and administration, and maintain financial security and stability.
