CBIRC Issues the Notice on Providing Financial Support to Ensure Smooth Freight Logistics
The Central Government attaches great importance to epidemic prevention and control while pursuing economic and social development in a well-coordinated way. It calls for promoting smooth international and domestic logistics, and making every effort to ensure the smooth operation of freight logistics, especially the transportation of important manufacturing materials and living supplies, so as to maintain the stability of industrial and supply chains. Recently, the CBIRC issued the Notice on Providing Financial Support to Ensure Smooth Freight Logistics (hereinafter referred to as the “Notice”).The Notice sets specific requirements for CBIRC local offices as well as banking and insurance institutions on supporting the smooth operation of freight logistics, mainly including eight aspects: enhancing consciousness, increasing financial support, helping key groups, raising service efficiency, innovating guarantee methods, strengthening insurance protection, ensuring financial security, and strengthening supervision and implementation.
The Notice requires that CBIRC local offices as well as banking and insurance institutions shall adopt targeted and effective measures, and provide strong support to ensure smooth freight logistics. Banking institutions shall make good use of inclusive loans to support micro and small enterprises (MSEs), and provide more inclusive loans to transportation firms and self-employed individuals as appropriate. It is requested to strengthen care and assistance for truck drivers. For truck drivers temporarily having difficulties in auto loan repayment due to the epidemic, commercial banks, as well as auto finance companies, corporate group finance companies, financial leasing companies, etc., shall make reasonable arrangements on the deferral, rollover or renewal of loans as appropriate for them to tide over the difficulties. Banking and insurance institutions are encouraged to optimize the approval process according to the market-based principle, and open “green channels” for transportation firms that undertake important tasks in epidemic prevention and control as well as emergency transportation. Insurance companies are encouraged to develop products such as personal accident insurance according to the characteristics of special job positions, such as truck drivers and deliverymen. Property insurance shall be actively promoted, such as cargo transportation insurance, carrier’s liability insurance for road cargo transportation, etc.
The Notice emphasizes that CBIRC local offices as well as banking and insurance institutions shall implement relevant policy requirements in details. At the same time, they shall actively promote and assist local governments to improve the loan risk compensation mechanism by means of reserve funds, interest subsidies, etc., so as to facilitate the steady development of financial business.
On April 18th, the CBIRC made a work plan to study and implement the guidance of the Central Government, resolutely carry out the requirements of the national teleconference to ensure smooth logistics and to promote the stability of industrial and supply chains, and make further efforts to ensure that people’s basic needs are covered, and smooth freight logistics and industrial circulation are maintained, on the basis of summing up and applying the good practices accumulated in the early stage.
Following the decisions of the Central Government, the regulators and banking and insurance institutions shall continue to provide stronger financial support for the transportation and logistics sectors and take multiple measures to keep industrial and supply chains safe and stable. Every possible means shall be used to ease the difficulties of MSEs and other market entities and satisfy people’s basic living needs. Meanwhile, a good balance shall be maintained between stable growth and risk prevention.
The CBIRC will follow the guidance of the Central Government on financial work, strengthen coordinated arrangements as well as supervision and guidance, and ensure that various financial support policies issued in the early stage are put to practice. Banking and insurance institutions shall take the initiative to “step forward” and carry out in details the work arrangements of the joint Covid-19 prevention and control mechanism under the state council, effectively help the communities solve practical difficulties, fully support the smooth circulation of the national economy, and maintain the normal order in people’s work and life.