Shanghai Securities News reports, ‘Previously, commercial banks wouldn’t agree to lend if a property firm or its project failed to satisfy all the qualifications and borrowing terms. But now, as long as key requirements are met, the other terms are negotiable.’
According to a manager from a bank’s corporate credit department, property developers, especially qualified small and medium ones, can now acquire bank approval of loans more easily.
He said, ‘There must be some flexible policies on the way to support these property firms.’
He said this has has always been the nation’s policy. In addition, a breakdown in the cash chain of smaller developers could bring them to the point of collapse which, in iteself, would lead to credit problems for banks. They need to be propped up.
Some banks, working in their own interest, are doing that.
Source: China Daily