Free Trial

China Banks Offer 25-Year Loans to LGFVs to Avoid Credit Crunch

MNI (Singapore)

China's top state-owned banks are offering local government financing vehicles (LGFVs) loans with ultra-long maturities and temporary interest relief to prevent a credit crunch, reported Guru Club, a financial publisher citing anonymous sources. Banks including the Industrial and Commercial Bank of China and China Construction Bank have started to ramp up loans that mature in 25 years to qualified LGFVs in recent months, compared to the prevailing 10-year tenor for most corporate lending. Some loans have interest or principal payments waived for the first four years, though the interest will accrue later, the source said. (Source: Guru Club)

To read the full story



MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.