1. Applicable Loan Types and Compensation Standard

The plan applies to non-performing loans arising from credit loans, intellectual property pledge loans, and accounts receivable pledge loans issued by partner banks. For a non-performing loan, the risk compensation ratio is 50 percent of the principal balance.

2. Introduction of Risk-Sharing Program Supported by Banks and Guarantee Entities

This plan also introduces a risk compensation model within a risk-sharing program backed by banks and guarantee entities. Under the program, the National Guarantee Fund, provincial-level guarantee and re-guarantee funds (institutions), and governmental financing and guarantee institutions cooperating with banks collectively bear 80 percent of the risk, while banks bear no less than 20 percent.

For loans issued under the program (not limited to credit loans, intellectual property pledge loans, or an accounts receivable pledge loans), the Beijing Economic-Technological Development Area will cover the 20-percent part borne by banks, ensuring governmental funds to serve as a safety net. This arrangement addresses banks' concerns about extending credit to technology enterprises, helps establish new channels for cooperation under the risk-sharing program, and greatly encourages collaboration between banks and government-backed financing guarantee companies.

3. Application Process for Funding

This plan clearly defines the roles and responsibilities of the Bureau of Finance and State-Owned Assets, trustee agencies, and partner banks. It outlines procedures for project registration, risk compensation application, risk compensation review, risk compensation confirmation, recovery, and write-off, among others.

4. Requirements for Management of Funds

This plan shares a risk compensation fund pool of 100 million yuan with the loan risk compensation policy for small and micro-sized enterprises, and will be adjusted based on actual conditions. Trustee agencies are responsible for the dedicated account management of risk compensation funds. These funds shall only be used for bank deposit products and shall not be used for investment, donations, sponsorships, or other purposes.

5. Policy Effectiveness Tracking

Trustee agencies shall submit, by the end of March each year, an annual audit report on the management and use of the risk compensation funds, along with an annual operation report.