[ad_1]
BEIJING (Reuters) – China’s housing ministry and financial regulator have urged local governments to work with financial institutions to help finance real estate projects, as policymakers seek to revitalize the sluggish housing market. requested that it be strengthened.
The two regulators announced in a joint statement on Friday that they plan to establish a mechanism aimed at better addressing the financing needs of real estate projects and supporting the stable development of the housing sector. .
China’s real estate sector has been facing a liquidity crisis since mid-2021, with major developers defaulting and delaying debt payments as they struggle to sell apartments and raise financing, making China the world’s second-largest real estate sector. It is weighing on economic growth.
According to a statement, the Ministry of Housing and Urban-Rural Development and the National Financial Supervisory Authority asked local governments to draw up a list of real estate projects eligible for loan support.
The regulator said financial institutions should expedite loan approvals for projects with sufficient collateral, reasonable debt and guaranteed sources of repayment.
Financial institutions should prevent hasty withdrawals, suspensions or suspensions of loans to projects that are experiencing temporary difficulties but maintain basic funding balances, he said.
It also said it would help extend existing loans, adjust loan repayments and provide new financing for projects.
(Reporting by Ziyi Tang, Ellen Zhang, Ella Cao, Liz Lee; Editing by Toby Chopra and Hugh Lawson)
[ad_2]
Source link
