Thursday, December 1, 2022
No menu items!

Chinese banks announce at least 29,500 million euros in credit to promoters

2022/11/23 at 11:39 pm

Must Read

Shanghai (China), Nov 24 – Several large Chinese state banks announced agreements to offer credit lines to some of the country’s main promoters for an amount of at least 220,000 million yuan (30,814 million dollars, 29,540 million euros), reports today the local media The Paper.

The announcements were made just days after the Government released a plan with 16 measures to support the battered real estate sector and the central bank and the banking regulator held a symposium with the main entities of the country in which the financing mechanisms for promoters.

Specifically, the Bank of Communications (Bocom) announced an intentional line of credit worth 100,000 million yuan (14,006 million dollars, 13,419 million euros) for the second largest promoter by sales in the country, Vanke, and another for 20,000 million yuan (2,801 million dollars, 2,684 million euros) for Midea Real Estate.

Vanke also signed a strategic agreement with Bank of China, which will also supply him with another 100 billion yuan.

The Agricultural Bank of China (ABC) announced another cooperation agreement with several promoters (China Overseas, China Resources Land, Longfor Group, Gemdale and, again, Vanke), although it did not specify the amounts that it will make available.

According to Bloomberg, the country’s largest bank, the Industrial and Commercial Bank of China (ICBC), will close a credit plan for “tens of billions” before the weekend that would benefit the largest promoter of the Asian giant, Country Garden, and Longfor Group.

That same information indicates that the last of the five large Chinese state banks, China Construction Bank (CCB), has not yet announced any agreement, but in September it already created a fund of 30,000 million yuan (4,202 million dollars, 4,026 million euros) to buy properties from promoters.

The real estate sector has been in serious financial trouble after, in 2020, Beijing announced restrictions to try to prevent an increase in the debt of developers, which had experienced strong growth for years through aggressive leverage and sales policies on flat.

The best-known case at the international level is that of Evergrande, which, in the middle of last year, accumulated liabilities of more than 300,000 million dollars and which was intervened by the authorities after it incurred in non-payment of its obligations.

The lack of liquidity in the sector has caused many developments throughout the country to be forced to stop construction, which this summer resulted in a “mortgage boycott” that spread to more than a hundred cities, with the buyers of the unfinished flats informing the banks that they would not continue paying their loans.

In recent months, Beijing has announced other measures to try to alleviate the real estate crisis, such as the opening of special lines of credit or the request to the country’s large state banks to grant financing worth one trillion yuan (about 141,377 million). dollars or 136,896 million euros) to the sector during the last months of this year.

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest News

Brazil’s coffee crop in 2023 will be 50-56 million bags, according to a report

Brazilian farmers will produce a minimum of 50 million and a maximum of 56 million bags of coffee next...

More Articles Like This