Yesterday, provincial second meeting of the 11^th people's congress just opened. Provincial NPC deputy from business circles among Ningbo delegation urgently submitted proposal, gave opinions, hoping in this financial crisis, through the ways of policy support, provincial government can help small and medium enterprises successfully pass the economy cold winter for the moment, wait for blossoming in warm spring.

It is reported that Zhejiang province is one of the most developed areas in our private economy. The number of small and medium enterprises has reached over million, accounting for 99.6% of Zhejiang industrial enterprises, absorbing labor force accounting for about over 70% of industry employment rate, the contribution rate on tax also reached over 60%. Such fine and multiple small and medium enterprises colonies made Zhejiang become the wealth big province.

However, the current raw materials price soaring, RMB appreciation, sharp increasing of labour and other costs, restricting loaning and ascending interests of private lending are becoming the five predicaments faced by million Zhejiang small and medium enterprises. Among them, restricting loaning has become the most difficult problem that small and medium enterprises need to work out.

At present, Zhejiang small and medium enterprises' capital gap is very severe. The danger of the rupture of cash chain is enlarging. According to the survey of Wang Liping, provincial NPC deputy and president of Zhejiang Guangbo Group, due to credit rsources scarcity, small and medium enterprises' loan interests are continuously upsurging. Some banks uplift the small and medium enterprises' loan interests to 30% to 40%, even 80%.If it is the guaranteed loan, it has to add guarantee institutions' 2% to 3% rate of security, as well as higher financing cost, so as to result in the growth of financial cost of over 40%, continuously increase the deficit risk. Due to small and medium enterprises having less accumulation, limited self-owned capital, in face of industrial transformation and upgrade pressure, not only need coordination from the various aspects of technology, market and innovative ability, but urgently need capital supporting.

In fact, business circle just like the nature needs a relatively complete ecosystem. Only small and medium-sized science and technology enterprises which provide services for middle large enterprises develop healthily, can middle large enterprises develop. This industry ecosystem can have sustainable development. Therefore, in this economy cold winter, only small and medium-sized science and technology enterprises and middle large enterprises join together and have co-prosperity, thus the whole economic society can develop steadily and live through the hard time.

Deputy Wang Liping suggested, to solve current Zhejiang small and medium enterprises' financing difficulty, the urgent matter is to perfect the dispositional mechanism of adverse assets formed by financial institution on small and medium enterprises' reasonable loan. Allow banks appropriately charge off small and medium enterprises' bad loan. Meanwhile, further increase small and medium enterprises’ credit loan placement. Deputy Lu Kang suggested, the government should establish the idea of supporting technology-based small and medium enterprises just means to support small and medium-sized science and technology enterprises, such as giving policy preference, fund support and so on, promote small and medium-sized science and technology enterprises to develop healthily, then realize the whole social economy’s steady growth.

Quoted from Ningbo Daily on Jan. 17, 2009