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

CHINA PRESS
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)

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