Central bank to support sick industries
The central bank has categorised sick industries into two groups to make it easier for some of them to restart operation and others to permanently close.
The central bank today has issued new working procedures that will categorically support and restructure loans for those industries that could be operated. "For those industries that could be operated, the banks and financial institutions could also waive penal interest and charge normal interest, and recover interest after a certain period," the new procedure said, adding, "If a bank wants to take central bank refinancing to help sick industries get loans at cheaper rates, the refinancing will be provided at the central bank-fixed interest rate.
However, for those industries that are not feasible to operate, they could get up to one year to sell their collateral to pay back loans, the central bank added. "To enjoy the facility, sick industries have to submit plan to their banks assuring the collateral could be sold at higher rate at a certain time."