Continuously improving financing for real estate enterprises. Two departments have issued a notice to extend the deadline of some policies under the "16 Financial Measures" | Policy | Financing departments
CCTV News: Yesterday, the People's Bank of China and the State Administration for Financial Supervision and Administration issued a notice on extending the period of policies related to financial support for the stable and healthy development of the real estate market. For policies with applicable periods, the applicable period will be uniformly extended to December 31, 2024.
The policy extension involves two aspects:
Firstly, for the existing financing of real estate enterprises such as development loans and trust loans, while ensuring the safety of creditor's rights, financial institutions and real estate enterprises are encouraged to negotiate independently based on commercial principles, actively support through methods such as extending existing loans and adjusting repayment arrangements, and promote project completion and delivery. For loans that expire before December 31, 2024, an extension of one year beyond the original regulations is allowed, and the loan classification may not be adjusted. The loan classification submitted to the credit reporting system shall remain consistent with it.
Secondly, for commercial banks that provide supporting financing to special loan support projects before December 31, 2024 in accordance with the requirements of the Notice, the risk classification will not be lowered during the loan term; After the debt is divided between new and old, the lending entities shall be managed as qualified borrowing entities. For newly issued supporting financing that results in non-performing loans, relevant institutions and personnel who have fulfilled their duties can be exempted from liability.
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Dong Ximiao, a researcher at the Financial Research Institute of Fudan University: The extension of the two policies with specific deadlines in the "16 Financial Regulations" by the financial management department will to some extent dispel the concerns of financial institutions, further change the situation of financial institutions being hesitant or unwilling to lend, encourage financial institutions to provide supporting financing for special loan support projects, continue to improve the financing situation of real estate enterprises, help stabilize market confidence and expectations, promote the stable and healthy development of the real estate market, and better assist in the sustained recovery of the macroeconomy.
The central bank stated that, apart from the two policies mentioned above, other policies that do not involve applicable deadlines are effective in the long term. Financial institutions should effectively implement policies in accordance with the requirements of the documents, support the demand for rigid and improved housing based on urban conditions, maintain reasonable and moderate real estate financing, increase financial support for guaranteed delivery of buildings, promote market-oriented clearance of industry risks, and promote stable and healthy development of the real estate market.