Under the background of more and more serious international financial crisis, the small and medium enterprises accounted for 99.6% of Zhejiang industrial enterprises, should how to pass the wintertime, becoming the focus of many deputies who attended the provincial second meeting of the 11^th people's congress.

Yesterday, Wang Liping, provincial NPC deputy and president of Zhejiang Guangbo Group, submitted the suggestion on perfecting the disposal mechanism of adverse assets formed by financial institution on small and medium enterprises, hoping through the ways of policy support, help small and medium enterprises successfully pass the preocular economy cold winter, wait for blossoming in warm spring.

The danger of the rupture of cash chain is enlarging

According to the Suggestion, unstable price of raw materials, 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, 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.

How to solve small and medium enterprises' financing difficulty

Representative Wang Liping suggested, to solve current Zhejiang small and medium enterprises' financing difficulty, the urgent matter is to perfect the disposal mechanism of adverse assets formed by financial institution on small and medium enterprises' reasonable loan. Concrete methods can be done from the following four aspects:

First, to allow banks appropriately charge off small and medium enterprises' bad loan. Secondly, speed up the recombinant treatment of loan maturities. For the 2009 loan maturities, automatically delay for one year. Thirdly, appropriately adjust loan responsibility investigation. For the enterprises' bad loan due to the change caused by economy circumstance, relax the responsibility investigation on credit employees of financial institution. As for those according with conditions since last September overdue not grant or less responsibility investigation. Fourthly, government establishes small and medium enterprises' bad loan disposal fund. When after three years, small and medium enterprises loans have the loss that can't withdraw, can have the disposal fund bear certain responsibility.

Enterprise fulfill the commitment of not downsizing   Government should encourage and support

"I have another idea, which should be the voice of most entrepreneurs." Representative Wang Liping said.

Under the financial crisis, some small and medium enterprises in Zhejiang withstood the pressure, promising not downsizing, not lowering salary, not decreasing welfare. Such enterprises fulfilling social responsibiliti, also put in quite a large cost.

Representative Wang Liping suggested, whether government can properly through  the preferential policies like financial subsidy, slowly charging tax or increasing capital input in technical transformation, support enterprises fulfilling the commitment of not downsizing, use policy to help enterprises extend own production and management, so as to gain new growth point, solve the problems of idle local labors and resources.

                                Quoted from City Bulletin on Jan. 18, 2009