BEIJING (Reuters) -China will offer interest subsidies for businesses in eight consumer service sectors including catering and tourism, in a bid to support services consumption amid a slowing economy.
Eligible businesses can receive an interest subsidy of one percentage point on loans from 21 national banks, nine government departments, including the Ministry of Finance, said in a statement on Tuesday.
The maximum loan amount eligible for the interest subsidy for a single entity could be up to 1 million yuan ($139,095), the statement said.
The move aims to reduce financing costs “for service industry operators” and boost the consumer market, it said.
The central government and provincial governments will bear 90% and 10% of the cost of the subsidy funds, respectively. The subsidy period would not exceed one year, it said.
The loans involved include fixed asset and working capital loans for enhancing business infrastructure and services capabilities.
Separately on Tuesday, financial regulators said they would offer interest subsidies for individuals that borrow consumer loans, to reduce borrowing costs and stimulate consumer spending.
Consumers can receive an interest subsidy of one percentage point on loans for single purchases no more than 50,000 yuan ($6,954) for items such as household vehicles and electronic products, it said.
($1 = 7.1902 Chinese yuan renminbi)
(Reporting by Ziyi Tang, Kevin Yao and Beijing NewsroomEditing by Bernadette Baum)
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