News Column

China Central Bank Lends CNY1trn PLS to Rebuild Shanty Town

August 18, 2014

SHANGHAI, August 18, SinoCast -- The People's Bank of China was reported in late July that it provided three-year CNY 1 trillion pledge supplemental loans (PSL) for China Development Bank to rebuild shanty towns in April.

Interest rate of the PSL available this year is 4.5%, far lower than banking lending rate of 6% in the same period.

Sources disclose that supply of the loans is expected to start up investment and it bears an economic regulation and control function.

However, analysts says that the CNY 1 trillion does not aid China Development Bank but local developers.

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Source: Sinocast Construction & Real Estate Beat (China)

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