Hangzhou launches a financing program for foreign trade companies on April 10. [Photo/zjol.com.cn]

Hangzhou, capital of East China's Zhejiang province, announced that it will start a financing program on April 10 for foreign trade companies that are struggling amid the pandemic.

Small and medium-sized companies have been facing financing difficulties for a long time, and it is proving to be a major obstacle to their development. This year, foreign trade companies are having a particularly tough time due to the outbreak of the novel coronavirus around the world.

Hangzhou, home to more than 12,000 small and medium-sized foreign trade companies, has taken a slew of measures to stimulate imports and exports.

The financing program, initiated by the Hangzhou Municipal Bureau of Commerce, Hangzhou Municipal Science and Technology Bureau and the Financial Affairs Office of Hangzhou, allows creditworthy companies to apply for unsecured loans in a quick and low-cost way from banks.

The Zhejiang Bureau of China Export & Credit Insurance Corporation provides export credit insurances for the program, and Hangzhou Hi-tech Investment Co Ltd offers complementary guarantees.

"The new program lowers the risks of all participants by involving third-party guarantee companies, which is helpful in encouraging banks to increase the amount of their loans," said an official from the city's commerce bureau.