Alibaba Group Holdings is one of the largest financial firms within the People’s Republic of China. On Monday, the group stated that one of its affiliates, Ant Financial’s MYBank unit, will dock out 20 billion yuan, or about $2.86 billion, in loans for companies. These discounted loans will be for all of China, but firms within the Hubei province will gain advantageous terms to the contract. The announcement was made on Alibaba’s official Weibo account.
Half For Hubei, half for China
Through the details given by the statement, Alibaba states that it will allocate 10 billion Yuan to loans within Hubei proper. Hubei itself is the province that stands as the epicenter of the coronavirus outbreak. Thus, it has been severely affected by the epidemic as a result. These loans will be offered through one-year contract loans, with zero interest rates for the first three months. Afterward, however, they will pay interest, but at a discount of 20% for the remaining nine months.
Alibaba states that these discounted loans will be made available all across China, with the other 10 billion Yuan being allocated for one-year loans across the remainder of the country. These loans will not be exempt from interest rates for any amount of time, but the rates will be done on a 20% discount.
Financial Crisis Support
Alibaba will be making other, less dramatic moves as well. Some of these include waiving platform fees on the company’s Tmall marketplace. This fee-free procedure will only work for the first half of 2020, however. Another critical measure is the allocation of a billion Yuan in order to add support to logistics and supply chain firms, as well as restaurants.
On Monday, the workers across the many factories and offices in China will go back to work. The move comes as the country is easing up on its restrictions of working during the epidemic. The death toll for the Coronavirus has reached over 900 people at the time of publishing, with only a small amount of them being outside of the Mainland.
Long-Term Effects Of Coronavirus
As the country is starting to realize that this will be a long-term crisis, it’s gearing up to try and keep its economy flowing in this time of difficulty. China’s stock markets suffered a hefty drop, even with a massive liquidity injection, and factories across China are receiving government support to keep the production at peak.