Caixin OnlineFinance & EconomicsTop Stories Finance Higher Interest Rates Raise Hurdles for SMEs
06.07.2011 12:55

Higher Interest Rates Raise Hurdles for SMEs

With banks tightening their belts, many Chinese SMEs have started to flounder on interest rates 30 to 50 percent higher than current benchmark levels
By intern reporter Wang Li

(Beijing) – China's small and medium-sized enterprises are now facing higher barriers to raising capital, with tougher standards for credit driving many to capital crisis.

According to an official from the Bank of Beijing, the bank's interest rates for small enterprises have increased by 30 to 50 percent above the benchmark level. Some enterprises have accepted loans 70 percent above the benchmark rate.

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