China to issue $29 billion of special loans to curb the mortgage crisis and finish housing projects

Bejing will offer 200 billion yuan ($29.3 billion) in special loans to finish delayed housing projects in China.
Hundreds of thousands of homeowners paid in advance and took out loans on properties but developers failed to complete properties, which led to a mortgage crisis.
The mortgage crisis and sanctions decreased the prices of stocks and bonds of the local property firms and in 86 cities, sanctions were effective.
In 2022, Bejing reduced its mortgage lending rate for the second time as the People’s Bank of China (PBOC) struggled to curb the liquidity problem in the real-estate sector. The PBOC cut the 5-year lending rate to 4.3% from 4.45%.
The rate cut will decrease borrowing costs on new mortgages in China and restore the country’s troubled real estate sector.

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