BEIJING -- China has stepped up support for epidemic-hit small market players by deferring their loan repayments, according to a circular jointly released by the country's central bank and five other government departments on Monday.

The principal and interest repayments on loans made to micro and small enterprises due in the fourth quarter of 2022 can be extended to June 30, 2023 at most, according to the circular.

The circular said the central bank will make comprehensive use of its monetary policy toolkits to maintain reasonably adequate liquidity in the banking system, and financial regulators should implement differentiated policies on the tolerance of non-performing loans for small and micro businesses.

Government financing guarantee institutions are encouraged to extend the guarantee period and to continue to provide credit support for enterprises in need, according to the circular.