In August 2012 Changzhou Municipal Government set up a special fund of 350 million yuan to guarantee stable development of local economy. This fund is specially provided for high-tech enterprises and star-level industrial companies in urban area to go through hard times, charging only 60% of loan interest rates. By the end of June 2014, the fund has transferred loans of 8.851 billion yuan in 611 times, of which a total of 2.164 billion yuan was transferred to 54 companies in the first half of 2014. The establishment and efficiency of government emergency fund is an effective way to help enterprises in financial difficulty, lower their financing cost and maintain their business operation. Moreover, it plays a positive role in guaranteeing a sustainable development of regional economy.
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