Developers struggle to pay back loans
By Zhang Fengming |
July 27, 2010, Tuesday
|
Print Edition
Print Edition
BANKS in Shanghai face more risk exposure from the real estate sector as developers are struggling to pay loans due to tighter controls in housing policy, the local banking regulator said.
"Attentive loans," which may turn into bad loans but have yet to sour, rose among development loans since April, the Shanghai Bureau of the China Banking Regulatory Commission said yesterday in a statement.
The attentive loans on real estate development loans rose to 1.4 billion yuan (US$209 million) in June, up from May's 632 million yuan and April's 172 million yuan.
"Developers are showing less ability to pay back the loans," the regulator said.
Banks in Shanghai are required to beef up efforts to avoid bad loans from development loans.
China has introduced several measures in the housing market since April to cool off speculation and out-of-control price rises.
The State Council, China's Cabinet, in late April raised the minimum down-payment on second-home mortgages to 50 percent from 40 percent.
An extra 10 percent interest rate must be applied to the second mortgage.
For those who buy three or more homes, even higher requirements should be levied on both down payments and interest rates.
Banks are also advised to suspend third home mortgages in cities where housing prices rise too rapidly.
In Shanghai, sales of new homes, as measured by volume, plunged 56 percent to 3.57 million square meters during the first half of this year amid walk-out buyer sentiment.
"Attentive loans," which may turn into bad loans but have yet to sour, rose among development loans since April, the Shanghai Bureau of the China Banking Regulatory Commission said yesterday in a statement.
The attentive loans on real estate development loans rose to 1.4 billion yuan (US$209 million) in June, up from May's 632 million yuan and April's 172 million yuan.
"Developers are showing less ability to pay back the loans," the regulator said.
Banks in Shanghai are required to beef up efforts to avoid bad loans from development loans.
China has introduced several measures in the housing market since April to cool off speculation and out-of-control price rises.
The State Council, China's Cabinet, in late April raised the minimum down-payment on second-home mortgages to 50 percent from 40 percent.
An extra 10 percent interest rate must be applied to the second mortgage.
For those who buy three or more homes, even higher requirements should be levied on both down payments and interest rates.
Banks are also advised to suspend third home mortgages in cities where housing prices rise too rapidly.
In Shanghai, sales of new homes, as measured by volume, plunged 56 percent to 3.57 million square meters during the first half of this year amid walk-out buyer sentiment.
- About Us
- |
- Terms of Use
- |
-
RSS - |
- Privacy Policy
- |
- Contact Us
- |
- Shanghai Call Center: 962288
- |
- Tip-off hotline: 52920043
- 沪ICP证：沪ICP备05050403号-1
- |
- 互联网新闻信息服务许可证：31120180004
- |
- 网络视听许可证：0909346
- |
- 广播电视节目制作许可证：沪字第354号
- |
- 增值电信业务经营许可证：沪B2-20120012
Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.
