The leaders of the FSC and the FSS along with the representatives of all financial sector associations and federations held a meeting on March 25, and signed a memorandum of agreement to effectively deliver the COVID-19 financial support package.

The following are the key points of the agreement.

Key Points

► Banks will work to provide funding to SMEs and small merchants through super low interest loans (1.5%).
► Banks will work to provide SMEs and small merchants with information about appropriate financing products.
► Banks will provide active assistance to the regional credit guarantee institutions that are facing burdens of workloads in receiving and reviewing applications.
► Credit guarantee institutions will closely cooperate with banks in ensuring prompt delivery of necessary funding to SMEs and small merchants.
► Banks will work to ensure that the loan and guarantee extensions as well as the deferment of interest payments are seamlessly implemented beginning on April 1.
► Banks will refrain from collecting debt from businesses that are facing temporary difficulties due to the COVID-19 outbreak.
► Banks will contribute to the bond market stabilization fund and actively cooperate to raise the fund when deemed necessary afterwards.
► Banks will actively cooperate to promptly launch a stock market stabilization fund.
► The financial regulators will ease standards on sanctions for financial institutions’ handling of the COVID-19 financial support and actively support banks’ efforts to boost liquidity requirements.

* Please refer to the attached PDF for details.