Zhejiang Finance helps foreign trade companies overcome difficulties

“With bank loans, our operations have been able to get back on track.” Recently, Li Xingfeng, the head of Shaoxing Ailun Textile Co., Ltd., still had lingering fears when recalling the difficulties faced by the company during the epidemic. At that time, export orders from Southeast Asian countries could not be shipped on time, and payment collection was seriously delayed. In addition, raw material and transportation prices increased, production costs continued to rise, and corporate operations were “under attack from both sides.”

Agricultural Bank of China Keqiao Branch in Shaoxing, Zhejiang Province immediately came to provide door-to-door services after learning about the situation. With the help of the “double guarantee” (guaranteeing employment and protecting market entities) launched by the Zhejiang Banking and Insurance Regulatory Bureau, ) emergency financing mechanism and government financing guarantee, the company successfully obtained an unsecured, low-cost “emergency double guarantee loan” of US$550,000 within a week.

Since the beginning of this year, Zhejiang’s foreign trade companies have faced many challenges due to the impact of the epidemic and the international environment. Financial institutions in our province frequently take practical measures to continuously optimize products and services to help foreign trade companies stabilize orders and production.

The key to using financial power to relieve enterprises from difficulties is to use “real money” to expand service coverage. The reporter learned that since this year, the Zhejiang Branch of the Agricultural Bank of China has provided a total of more than 60 billion yuan in local and foreign currency loans to more than 2,000 import and export companies in the province, a year-on-year increase of 10.2 billion yuan; the Zhejiang Branch of the Bank of China has innovated the “Foreign Trade Tongbao” and “Tax Special products for small and micro foreign trade such as “Tongbao” and “Jielie Tongbao” have provided financing support to a total of 2,836 companies.

Zhejiang financial institutions have also extended their service chains to meet the needs of enterprises. Amid the epidemic, Ningbo Aosen E-Commerce Co., Ltd. achieved an increase in export trade volume by investing in and building overseas warehouses, but the company’s capital flow was once tight. After learning about the situation, Ningbo Branch of Zheshang Bank responded quickly and approved a credit line of 100 million yuan for the enterprise and a supporting special foreign exchange transaction exemption limit. In the first four months of this year, Zheshang Bank has provided a total of US$18.6 million in financing and handled US$76 million in foreign exchange transactions.

Zheshang Bank also provides foreign trade companies with rich foreign exchange market views and trading advice. According to the relevant person in charge of Zheshang Bank Ningbo Branch, the bank helped Aosen Company make foreign exchange derivative transaction decisions based on the exchange rate in 2022, successfully avoiding the risk of non-US currency fluctuations and ensuring the stability of revenue and profits.

As a major financial service product that builds a risk barrier, export credit insurance has always been the direction of Zhejiang’s financial institutions. A company in Haiyan specializes in special steel, shelves and other products, with an annual export volume of US$120 million, and most of its products are exported to Russia. Affected by the conflict between Russia and Ukraine, Russian buyers were unable to pay the US$1.073 million payment for the shipped portion. After learning of the situation, CITIC Insurance quickly paid US$807,000 in compensation, including US$227,000 in compensation before shipment, which promptly made up for the company’s losses.

The reporter learned from the Zhejiang Banking and Insurance Regulatory Bureau that as of the end of April 2022, the export credit insurance companies within its jurisdiction had provided services to support 18,000 export companies in Zhejiang (excluding Ningbo), a year-on-year increase of 19.5%; in the first four months of this year, export credit insurance The products have helped relevant foreign trade enterprises in our province recover losses of US$133 million, effectively ensuring the normal production and operation of enterprises in our province.

AAA

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