(Bloomberg) -- China will take more steps to support debt financing for companies that are working on preventing or controlling the spread of the coronavirus, and for firms operating in areas that have been hit by the outbreak.
Authorities will help companies that are seeking to raise funds for projects such as medical services and scientific research related to the virus, the National Development and Reform Commission said in a statement Saturday. The income requirements for bonds on such projects can be relaxed if safeguards for debt repayment are in place, it said.
Firms will also be allowed to raise money to repay or roll over previous project loans that were used to prevent or control the outbreak. Companies affected by the disease but with quality assets and good operations of virus-related projects will be allowed to apply for the issuance of new corporate bonds to repay the principal and interest of debt due in 2020.
NDRC will encourage firms with good credit to provide liquidity support for small and medium-sized enterprises affected by the outbreak. It will also allow the extension of time limits for bond issuance and the submission of application materials for some companies.
©2020 Bloomberg L.P.
RECOMMENDED FOR YOU
POPULAR