The China (Shandong) Pilot Free Trade Zone (FTZ) Qingdao Area, which is located in the Qingdao West Coast New Area, recently launched a "Free Trade Loan" fund pool management measure.
The measure aims to alleviate the difficulty and high costs of financing for micro-, small- and medium-sized foreign trade enterprises, ease their financial pressure, and further support the development of the foreign trade industry in the area.
According to the management measure, Qingdao FTZ set up a 100-million-yuan ($15.72 million) "Free Trade Loan" fund pool, and has invested 20 million yuan in the first phase to provide risk mitigation for the bank loans of export trade enterprises in the area.
Qingdao FTZ has selected three banks to carry out the "Free Trade Loan" business. The banks will set up suitable special credit products according to the actual needs of export tax rebate enterprises, and they promise to extend loans to export tax rebate enterprises by eight to 10 times based on the fund pool. The loan interest rate of the special credit products will be the inclusive interest rate.
The "Free Trade Loan" fund pool will be put into trial operation one year in advance, and it will be decided whether it will be officially operational based on the current situation. After becoming officially operational, each round of operation lasts two years.