Chinese Businesses Impacted by Coronavirus Request Bank Loans Exceeding $8 Billion
With no end in sight, the coronavirus has become problematic for businesses throughout China that remain closed as the virus sweeps across the country—the death toll recently exceeding 1,100. On Feb. 10, Reuters reported more than 300 Chinese companies are hoping to soften the blow from the outbreak by requesting billions of dollars in bank loans.
The sought-after bank loans total approximately 57.4 billion yuan ($8.2 billion), according to two banking sources, Reuters states. The city government's finance bureau sent two lists of company names to Beijing banks, the sources said. It is likely those in Beijing that were either controlled by the virus or most impacted will get "fast-track approvals and preferential interest rates."
"Banks will have the final say on lending decisions," one of the sources said in the article. "The interest rates are likely to be on par with those offered to banks' top clients."
Reuters reported three companies listed, including smartphone maker Xiaomi with a request of five billion yuan for the production and sale of medical equipment; delivery service Meituan Dianping with a request of four billion yuan for food and deliveries to medical staff in Wuhan; and transportation company Didi Chuxing—impacted by the outbreak—for 50 million yuan.
—Andrew Michaels, editorial associate