China rejects $1 trillion proposal to solve housing crisis
Posted on August 14, 2024 |
China has turned down an IMF recommendation to address its long-standing property market crisis, estimated to cost around $1 trillion.
The IMF suggested speeding up the completion of unfinished, presold homes to rebuild homebuyer confidence.
The IMF's plan included a policy package, partly funded by the central government, to handle unfinished projects and address insolvent developers.
The property market crisis in China started in 2020 due to government measures against speculation and excessive borrowing.
Major real estate firms like Evergrande and Country Garden went bankrupt, worsening the crisis.
Evergrande has been ordered to liquidate, and Country Garden needs to finalize a debt-restructuring plan by January to avoid liquidation.
China’s rejection of the IMF’s $1 trillion plan highlights ongoing difficulties in stabilizing the property market.
