City drawing up new housing credit policies
19/6/2003 14:30
Local commercial banks are encouraged to give more support to the
development and construction of mid and low-priced housing projects, according
to the Shanghai branch of the People's Bank of China (PBOC), the Shanghai
Morning Post reported today.
The local branch of the PBOC is drawing up
detailed housing credit policies according to the new housing credit regulations
issued by the PBOC on June 13.
According to the bank, local commercial
banks cannot extend loans to property developers if their capital is below the
required amount and cannot provide excessive funding to high-end property
developers.
Commercial banks should focus on supporting the development
and construction of mid and low-end properties, according to the local branch of
PBOC.
Locals buying housing priced at least 7,000 yuan (US$843) per
square meter or with a total price of at least one million yuan can receive
loans covering no more than 70 percent of the total price.
People buying
housing not for their own residential purposes can receive loans covering no
more than 70 percent of the total price.
The PBOC, the country's central
bank, issued a circular on June 13 to support mid and low-end home buyers while
restricting loan criteria for second-home buyers.
Wendy Zhang/ Shanghai Daily news
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