Terraced fields in Lishui. [Photo/lsnews.com.cn]

The People's Bank of China (PBOC) Lishui branch had issued a total of 623 million yuan ($88.35 million) of re-lending by April 2, which is expected to reduce the financing cost of local enterprises by more than 10 million yuan.

PBOC Lishui branch actively is guiding banking institutions in Lishui to increase financial support for spring ploughing preparation, livestock breeding, tourism and entertainment, accommodation and catering, and other fields.

Lishui Xingchang New Material Science & Technology Co Ltd is mainly engaged in the research and development, production and sales of special paper and new paper materials, and has an annual output value of 35.8 million yuan.

Affected by the COVID-19 outbreak, the enterprise is beset by financial problems. PBOC Lishui branch explored the company's needs and stepped up efforts to guide financial institutions to support it in expanding production and technological transformation by means of credit loans and medium to long-term loans.

To date, Suichang Rural Commercial Bank has extended a one-year credit loan of three million yuan to the enterprise at an interest rate of 4.05 percent. After the loan was issued, the enterprise completed the technical upgrading and transformation of five production lines. The production capacity of mask paper has been increased to 1.2 tons per day, and the production capacity of non-woven cloth has been increased to one ton per day.

Also affected by the epidemic, some tea factories in Suichang county in Lishui have problems such as insufficient start-up capital, employment difficulties and increased sales costs, and the recovery rate of production capacity is less than 70 percent.

After learning of the situation, PBOC Lishui branch guided local financial institutions to effectively use the re-lending funds to provide precise financial support to local tea processors.

Statistics show that of the 623 million yuan of re-lending, 475 million yuan was used to support the resumption of work and production, and 148 million yuan was used to support preparations for spring ploughing, accounting for 76.24 and 23.76 percent.