China will help property developers by issuing 1 trillion yuan ($148.2 billion) in loans for stalled developments, the Financial Times said, as Beijing tries to revive the debt-stricken sector and relieve pressure on the economy.
Once a key pillar of growth, China’s property sector has been lurching from one crisis to another for the past year. A growing mortgage revolt by homebuyers this month has put more pressure on authorities to act quickly to quell any social unrest.
The People’s Bank of China (PBOC) will initially issue about 200 billion yuan of low-interest loans, charging about 1.75% a year, to state commercial banks, the FT said, citing people involved in the discussions.
The plan, recently approved by China’s State Council, will permit banks to use the PBOC loans along with their own funds to refinance stalled real estate projects, the report added.