Earlier, ICBC provided a credit facility of RMB 1.5 billion to the "Huayan Zutuan Public Rental Housing" project in Chongqing. The first tranche has been released successfully. As related, this is the first loan for public rental housing development in the country released by a financial institution, which will give an important impetus to the housing development for the low -income families across the country.
"Huayan Zutuan Public Rental Housing" project financed under this ICBC loan is one of the three public rental housing projects in the first batch in 2010. According to the plan, 18,000 housing units will be provided for low- income families and 45,000 people to live. This will greatly solve the housing problem for these specific groups in Chongqing.
Public rental housing is a key item of China's housing project for low-income population and an important project for people's livelihood. Since Chonqging is included in the first batch of pilot cities under the nationwide public rental housing plan, the municipal government plans to complete 30 million square meters for public rental housing to provide housing for over 500,000 people of low- and-mid- income groups. At present, more than 10 million square meters for public rental housing has been started construction in Chongqing.
ICBC upholds the state's housing strategy to start pilot on providing loans to public rental housing developers, said an executive with ICBC. Besides the services in extending loans for affordable housing, low-rent housing or renovation in run-down areas, attempts have been made using new business model to grant credit to public rental housing developers based on the commercial principal.
Loans are strictly provided in accordance with the requirements of regulatory departments with risks under effective control. ICBC will strictly follows the "Three Measure, One Guideline" laid down by the China Banking Regulatory Commission to focus on the loan release and payment management in a bid to ensure ICBC loans are used in stated purposes.
The ICBC executive said that more than 350 million square meters in the country are for public rental housing in the next five years, and the total investment will surpass RMB 1 trillion, according to the forecast from concerned departments. Under the instructions of People's Bank of China, China Banking Regulatory Commission and concerned ministries and commissions, ICBC will strictly follow the commercial principle and exercise effective control on the risks to increase the support to the construction for public rental housing in a gradualist fashion.
The goal is to contribute ICBC's share in the construction of housing for the low-income population in the country.
