Govt allows lenders to give new loans to indebted

Banks can make new loans to small and micro enterprises if the companies have problems in repaying an old loan, according to a new government policy unveiled on Thursday.

Previously, a company could apply for a new loan only after it had paid off the old one. Additionally, the company would have to wait weeks to get bank approval for the loan.

Presiding over an executive meeting of the State Council, on Wednesday, Premier Li Keqiang asked for a reduction in the high financing costs to companies as well as the enhancement of financial support for the real economy.