Alibaba offers $2.86 billion in loans to Chinese firms hit by coronavirus outbreak


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Alibaba offers $2.86 billion in loans to Chinese firms hit by coronavirus outbreak

On Monday, the 17th of February 2020, the Chinese e-commerce behemoth, Alibaba Group Holdings owned by the Chinese investor and philanthropist Jack Ma, a conventional salesman turned in to a billionaire entrepreneur, had issued a statement saying that its affiliate financial services arm, Ant Financial’s MyBank unit would proffer as much as $2.86 billion or ¥20 billion in fresh debts for the coronavirus hit Chinese companies adding that the firms from the central Hubei province, the epicentre of the coronavirus outbreak which took the most grievous hit, would be preferred while sanctioning debts.

Besides, according to the Chinese e-commerce giant, primarily engaged in offering b2b and b2c sales through its e-commerce platform, Alibaba’s Monday’s (February 17th) statement posted in its official Weibo account, 50 per cent of the planned aids in debts would be offered to the firms operating in the Chinese state of Central Hubei and the firms would be provided with a one-year debt on a zero-interest policy for the first three months, while for the remaining nine months, the firms would have to interests on a 20 per cent discount.

Besides, Monday’s (February 17th) Alibaba’s statement had also added that the remaining would be delivered to other Chinese firms with a 20 per cent discount on interest rate, nonetheless, they would not receive the zero-interest rate policy for the first three months.