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China Launches National Fund To Ensure Housing Project Delivery - Caixin

CHINA PRESS
MNI (Singapore)

China has started to deploy its CNY200 billion national special loan scheme as it looks to support liquidity-strained property developers’ delivery of unfinished housing projects, Caixin reported. The special loans will be arranged by China Development Bank and Agricultural Development Bank of China within the existing loan quota under the guidance of the central bank. Furthermore, municipal governments should repay the debt within three years otherwise the interest rate applied to the loan will double, Caixin wrote, citing unnamed sources. The interest rate for the first two years will be 2.8%, as a result of a fiscal discount, rising to 3.2% in the third year, Caixin noted.

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