The People’s Bank of China plans to provide RMB200 billion interest-free loans to commercial banks before March 31, 2023, in order for the banks to provide funds for presold homes.
According to the state-run media Economic Daily report, the funds will be offered to six commercial banks, and the PBOC is consulting the lenders for the practices of the proposal to deal with the unfinished units.
It was reported that the transition period for real estate loan concentration management will be extended to two years.
This plan will be implemented following Beijing’s 16-point plan to rescue the struggling property sector last week, and more than 1 trillion yuan of fresh financing might have been injected into the industry by the central government.
S&P Global Rating expects a recovery could come in the second half of 2023 with these supportive measures.
Meanwhile, embattled mainland developers are busy dealing with their debt. China Evergrande had put up a proposal to delay the interest payment, due this Saturday, for RMB4 billion onshore debt for a half year once again. Whilst, China Aoyuan plans to package and restructure its onshore debt, which involves about RMB11.6 billion.
Meanwhile, Sunac China’s property arm plans to extend its 15.4 billion yuan onshore debts again, mainland media reported. It would offer two options: to prolong the previously extended debt for another 3.75 years until September 2026, or to extend the current debt for 4.5 years until 2027.
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