China's MOF extends personal consumption loan interest subsidies until the end of 2026
Importance
Level 1
- Expands interest subsidies to credit card instalments and sets the rate at 1%.
- Extends service sector loan interest subsidies to December 31st 2026.
- To offer 1.5% interest subsidy for equipment renewal loans.
- Expands the interest subsidies to tech re-lending, with the policy to run until the end of 2026.
- The central government is to bear 90% of interest subsidies, while provincial governments bear 10%.
- To provide 1.5% annual interest subsidy for SME private firm loans through 2026.
- To give support to target NEVs, industrial machinery, pharmaceuticals and emerging fields, including AI.
- To inject CNY 5bln into the government guarantee fund.
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