Daily Management Review

Loan Offers Worth $2.86 Billion To Firms Affected By Coronavirus Made By Alibaba


Loan Offers Worth $2.86 Billion To Firms Affected By Coronavirus Made By Alibaba
Companies that have been affected financially by the rapid spread of coronavirus in China can avail loans worth a total of 20 billion yuan or $2.86 billion with special treatment and much more better terms for companies that are located in Hubei province of China. These loans will be offered by the affiliate Ant Financial's MYBank unit of Alibaba Group Holdings, the company has said.
This announcement was made by Alibaba in the form of a statement that was posted on the company’s official Weibo account.
Companies affected by the virus outbreak will be offered a total of 10 billion yuan. Hubei is the province in Central China form where the coronavirus emerged and spread to the rest of the country initially – and now to many other parts of the world. Alibaba said that those companies that hail from this region will be offered loans for a period of one year under zero rates of interest for the first three months of the period and along with a discount of 20 per cent in the interest rates that would be applicable for the remaining period of the loan tenure. .
Other companies that are located in other parts of the country would also be offered loans worth a total of another 10 billion yuan for a period of one year for which the company will reduce the prevalent rates of interest by 20 per cent, Alibaba said.
Alibaba also announced some other measures which include waiver of platform fees for merchants on its Tmall marketplace for the first half of 2020 as well as supporting restaurants, logistics and supply chain firms by creating two 1 billion yuan funds.
After a long break which started off because of the Lunar New Year Holidays and then extended till February 10 at least, some factories that has been closed own upon advice from the Chinese authorities reopened on Monday and some workers and staff returned back to work to those factories and offices all across China. The Chinese government also relaxed some other restrictions on working that had been imposed to prevent the spread of the coronavirus. Till now more than 900 people have been killed by the virus – most of them from mainland China.
Banks have been urged by the Chinese banking regulators to bring down the rate of interest charged on loans while also offering loans to those companies and firms that have been significantly impacted by the outbreak of the virus.