Chinese Regulators Allocate $29.6 Billion to Guarantee Home
Image Source : China Visual
BEIJING, August 29 (TMTPOST) — Many housing projects in China came to a halt because of liquidity crisis. Home buyers who were unbale to collect their homes threatened to stop paying back housing loans. The pressure of "guaranteeing the delivery of buildings" was transmitted from enterprises to governments at all levels.
Some local relief funds were initially set up to resolve the risk. But the problematic properties' funding gap were so huge that Chinese regulators decided to set up a national relief fund.
According to CCTV News, the Ministry of Housing and Urban-Rural Development, the Ministry of Finance, the People's Bank of China (PBOC), namely, the central bank, and other relevant departments will take measures to support the delivery of residential projects sold with overdue delivery by means of special borrowing from policy banks.
The Caixin reporter confirmed from several independent sources that the initial size of this special borrowing amounted to 200 billion yuan ($29.6 Billion), which will be arranged by the central bank under the guidance of the China Development Bank and Agricultural Development Bank of China in the existing loan quote.
The special borrowing adopts the model of city unified borrowing and repayment, that is to borrow, use and repay as a city unit. Special borrowing is included in the local government debt.
In principle, the local government borrowing period should be no more than three years. The interest rate on the loan in the first two years was 2.8% after the discounts. In the third year, the borrowing rate rose to 3.2%. If the debt can not be paid off in more than three years, the borrowing rate doubles on the basis of the interest rate in the third year, and the Ministry of Finance will urge the relevant local governments to repay.
It is worth noting that Chinese regulators clearly proposed that the 200 billion yuan（$29.6 Billion） national relief fund should "not stimulate the real estate market, and not rescue real estate enterprises". The funds are only used to help the construction and delivery of residential projects that are sold, overdue and difficult to deliver.
>相关《Chinese Regulators Allocate $29.6 Billion to Guarantee Home》内容：
1、 7 More Chinese Entities Blacklisted By US
Image Source ：China Visual BEIJING, August 24 (TMTPOST) --The US Department of Commerce added 7 Chinese entities, mostly related to aerospace, to its export control list of sanctioned organizations or individuals on Wednesday local time...【继续阅读】
2、 Pulsic Takeover Bid by Chinese Firm Blocked
Image Source ：China Visual BEIJING, August 22 (TMTPOST) -- Shanghai UniVista Industrial Software Group's attempt to take over British software company Pulsic Limited has been terminated by British regulators on the grounds of national s...【继续阅读】
3、 Chinese Manufacturers Setbacks in India
Image source: China Visual By Rao Xiangyu and Huixia Sun BEIJING, August 17 (TMTPOST) – Chinese smartphone maker vivo has become the latest target of Indian law enforcers in a series of moves against Chinese companies on the pretext of...【继续阅读】