How strong is the financial support for real estate？ State-owned enterprises and private enterprises treat each other equally and support the reasonable extension of stock financing.
According to a number of media reports, the People’s Bank of China and China Banking and Insurance Regulatory Commission recently jointly issued the Notice on Doing a Good Job in Financial Support for the Stable and Healthy Development of the Real Estate Market (hereinafter referred to as the Notice).
On November 14th, The Paper verified from trust, insurance and other institutions that he had received the Notice.
The "Notice" promulgated 16 financial measures to support the real estate market, involving financial institutions including commercial banks, policy banks, trust companies, insurance companies and financial asset management companies.
State-owned and private housing enterprises are treated equally, and support the reasonable extension of stock financing such as development loans and trust loans.
In order to keep real estate financing stable and orderly, the Notice proposes that, first, we should adhere to the principle of "two unwavering" and treat all kinds of real estate enterprises, such as state-owned and private enterprises, equally. Encourage financial institutions to focus on supporting the steady development of real estate enterprises with perfect governance, focus on their main businesses and good qualifications. Support the project sponsor bank and syndicated loan model, strengthen the management of the whole process of loan approval, issuance and recovery, and effectively ensure the safety of funds.
The second is to support all localities to implement differentiated housing credit policies based on national policies, reasonably determine the down payment ratio of local individual housing loans and the lower limit of loan interest rate policies, and support rigid and improved housing demand.
The third is to stabilize the credit supply of construction enterprises. Encourage financial institutions to optimize credit services for construction enterprises on the basis of controllable risks and sustainable business, provide necessary loan support, and maintain continuous and stable financing for construction enterprises.
Fourth, support the reasonable extension of stock financing such as development loans and trust loans. For stock financing such as development loans and trust loans of real estate enterprises, under the premise of ensuring the security of creditor’s rights, financial institutions and real estate enterprises are encouraged to negotiate independently on the basis of commercial principles, and actively support them by extending the stock loans and adjusting repayment arrangements to promote the completion and delivery of projects. As of the date of issuance of this notice,Due in the next six months, it can be extended for one year beyond the original provisions, without adjusting the loan classification.The loan classification submitted to the credit information system is consistent with it.
The fifth is to keep bond financing basically stable. Support high-quality real estate enterprises to issue bonds for financing. Promote professional credit enhancement institutions to provide credit enhancement support for the bond issuance of real estate enterprises with overall financial health and short-term difficulties. Encourage bond issuers and holders to communicate in advance and make arrangements for bond redemption funds. If it is indeed difficult to pay on schedule, reasonable arrangements such as extension and replacement shall be made through consultation to actively resolve risks. Support bond issuers to buy back bonds in domestic and foreign markets.
The sixth is to maintain the financing stability of asset management products such as trusts.Encourage trust and other asset management products to support the reasonable financing needs of real estate.. Encourage financial institutions such as trust companies to speed up business transformation, support the reasonable financing needs of real estate enterprises and projects according to the principles of marketization and rule of law on the basis of strictly implementing the regulatory requirements for asset management products and doing a good job in risk prevention and control, and provide financial support for real estate enterprise project mergers and acquisitions, commercial pension real estate, rental housing construction, etc. according to laws and regulations.
Actively do a good job in the financial services of "guaranteed delivery building" and support relevant banks to add supporting financing support.
As for the financial services of Baojiaolou, the Notice proposes to support China Development Bank and Agricultural Development Bank to issue special loans of Baojiaolou to borrowers who have been reviewed and filed in compliance with the law, efficiently and orderly in accordance with relevant policy arrangements and requirements, with closed operation and special funds earmarked for supporting the accelerated construction and delivery of sold overdue residential projects.
After the special loan support project clarifies the creditor’s rights and debts, the special loan and the new judicial guarantee for supporting financing, financial institutions, especially the main financing commercial bank of the project personal housing loan or its leading syndicates, are encouraged to follow the principles of marketization and rule of law.Provide new supporting financing support for special loan support projects.To promote the resolution of the risk of personal housing loans that have not been handed over.
Actively cooperate with the risk disposal of trapped real estate enterprises and actively explore market-oriented support methods.
"Notice" said that it is necessary to do a good job in financial support for real estate project mergers and acquisitions and actively explore market-oriented support methods. Encourage commercial banks to carry out M&A loan business for real estate projects in a steady and orderly manner, and focus on supporting high-quality real estate enterprises to merge and acquire troubled real estate enterprise projects. Encourage financial asset management companies and local asset management companies (hereinafter referred to as asset management companies) to give full play to their experience and ability in the disposal of non-performing assets and risk management, and consult with local governments, commercial banks, real estate enterprises, etc. on risk resolution models to promote the accelerated disposal of assets. Encourage asset management companies to cooperate with third-party institutions such as law firms and accounting firms to improve the efficiency of asset disposal. Support qualified commercial banks and financial asset management companies to issue real estate project M&A themed financial bonds.
For some projects that have entered the judicial reorganization, financial institutions can help promote the project to return to work and deliver according to the principles of independent decision-making, self-risk and self-financing. Encourage asset management companies to participate in project disposal by acting as bankruptcy administrators and reorganizing investors. Support qualified financial institutions to steadily explore ways to solve the risks of trapped real estate enterprises in accordance with laws and regulations by setting up funds, and support the completion and delivery of projects.
Protect the legitimate rights and interests of housing finance consumers and personal credit rights and interests according to law.
The "Notice" emphasizes encouraging independent negotiation in accordance with the law to postpone the repayment of principal and interest, and effectively protecting the personal credit rights of deferred loans. Specifically, for individuals who are hospitalized or isolated due to the epidemic, or who have lost their sources of income due to the suspension of business and unemployment due to the epidemic, and personal housing loans that have been changed or cancelled due to the purchase contract, financial institutions can independently negotiate with the buyers according to the principles of marketization and rule of law, and make adjustments such as extension. All parties concerned must abide by the rules, abide by the contract and fulfill their commitments. In this process, financial institutions should do a good job in customer service, strengthen communication, protect the legitimate rights and interests of financial consumers according to law, and classify assets according to relevant regulations. Acts of malicious evasion of financial debts shall be dealt with according to laws and regulations to maintain a good market order.
In terms of personal credit rights, if the repayment arrangement of personal housing loans has been adjusted, financial institutions shall submit credit records according to the new repayment arrangement; If it is determined by the judgment or ruling of the people’s court that it should be adjusted, the financial institution shall adjust the credit records according to the effective judgment or ruling of the people’s court, and adjust those that have been submitted. Financial institutions should properly handle relevant credit objections and protect the rights and interests of information subjects according to law.
Adjust some financial management policies in stages to accelerate the marketization of real estate risks.
According to the Notice,Extend the transition period arrangement of real estate loan concentration management policy and optimize the financing policy of real estate project M&A in stages.. For banking financial institutions that can’t meet the requirements of real estate loan concentration management as scheduled due to objective reasons such as epidemic situation, the People’s Bank of China, China Banking and Insurance Regulatory Commission or branches of the People’s Bank of China, and China Banking and Insurance Regulatory Commission dispatched offices will reasonably extend their transition period according to the relevant provisions on the management of real estate loan concentration, based on the actual situation and through objective evaluation.
At the same time, relevant financial institutions should make good use of the staged real estate financial management policies that have been promulgated by the People’s Bank of China and China Banking and Insurance Regulatory Commission, which are applicable to major commercial banks and national financial asset management companies, and accelerate the market-oriented clearing of real estate risks.
Increase financial support for housing leasing and broaden diversified financing channels in relevant markets.
The "Notice" proposes to optimize housing rental credit services and broaden diversified financing channels in the housing rental market. Guide financial institutions to focus on increasing credit support for self-sustaining property-based housing leasing enterprises with independent legal person operation, clear business boundaries and real estate professional investment and management capabilities, rationally design loan terms, interest rates and repayment methods, and actively meet the medium and long-term capital needs of enterprises. Encourage financial institutions to provide financial support for various entities to purchase and rebuild real estate projects for housing leasing in accordance with the principles of marketization and rule of law. Loans issued by commercial banks to affordable rental housing projects that hold the confirmation of affordable housing rental projects are not included in the concentration management of real estate loans. Commercial real estate is transformed into affordable rental housing, and after obtaining the confirmation of affordable rental housing, the bank’s loan term and interest rate are applicable to the relevant policies of affordable rental loans.
At the same time, support housing leasing enterprises to issue direct financing products such as credit bonds and guarantee bonds, which are specially used for the construction and operation of rental housing. Encourage commercial banks to issue financial bonds to support housing leasing, and raise funds to increase the development and construction loans and operating loans for housing leasing. Steadily promote the real estate investment trust funds (REITs) pilot.
