Significant Financial Support for Equipment Upgrade Loans in 2024

The Ministry of Finance recently issued a notice aimed at further strengthening support for equipment upgrades and technological transformations. According to this notice, eligible equipment upgrade loans that are issued after March 7, 2024, and pertain to loan contracts signed and equipment purchase or upgrade service procurement contracts finalized before this date will be included in the financial interest subsidy policy. Additionally, the implementation period for the financial interest subsidy policy for equipment upgrade loans will be extended until the People's Bank of China exhausts the relevant re-lending quota for equipment upgrades.

Subsequently, in June 2024, the Ministry of Finance, the National Development and Reform Commission, the People's Bank of China, and the Financial Regulatory Administration jointly issued another notice that further clarified the implementation details of the financial interest subsidy policy for equipment upgrade loans. According to this notice, if an operational entity implements equipment upgrade actions in accordance with relevant requirements and is included in the list of alternative projects determined by relevant departments, and if its bank loan receives re-lending support for equipment upgrades from the People's Bank of China, the central government will grant interest subsidies on the bank loans of the operational entity.