(Yicai Global) May 9 -- Shanghai’s financial authorities have rolled out policies to help businesses and individuals affected by the resurgence of Covid-19.

The city’s financial institutions have issued CNY33.5 billion (USD5 billion) in loans since march to 731 logistics companies guaranteeing the supply of anti-pandemic materials, Yu Wenjian, director of the financial consumer protection bureau under the People’s Bank of China, said yesterday.

During the same period, they have also offered loans worth CNY72.3 billion (USD10.8 billion) to more than 10,000 retailers and companies in catering, tourism, and transport that have been impacted by the recent outbreak of Covid-19, Yu told a press conference.

He added that the central bank is also encouraging financial firms to cut borrowing costs as well as loan-related fees for these companies. The lending rate on Shanghai’s inclusive loans to micro and small businesses is about 4.96 percent at present, which is among the lowest nationwide.

Speaking at the same press conference, Cao Guangqun, deputy head of the China Banking and Insurance Regulatory Commission’s Shanghai branch, revealed that in the first quarter, the city’s financial institutions deferred repayment of more than CNY8.1 billion in loans for enterprises in difficulties.

In addition, they collectively delayed the repayment of more than 20,000 individual home mortgages, Cao pointed out.

Yu noted that Shanghai has also offered policy support to companies related to pandemic prevention and control as well as key corporations required to resume work and production.

For instance, Industrial and Commercial Bank of China provided a loan of CNY50 million (USD7.4 million) to Shanghai GeneoDx Biotechnology, a producer of Covid-19 testing kits. And China Construction Bank offered CNY480 million in loans for the upgrade and retrofitting of the No. 2 generator units of Shenzhen Energy’s second power plant.

Regulators have instructed financial firms to allow lenders to defer loan repayments and adjust their repayment plans to ease pressure on the firms while encouraging them to increase credit support for gig economy workers such as taxi drivers, online retailers, and truck drivers.

Shanghai’s regulators have also partnered with more than 50 commercial banks to establish an emergency mechanism to help with wage payments amid the pandemic through online verification of the identity of firms and their willingness to pay salaries.

Editors: Zhang Yushuo, Peter Thomas