CDB Supports Construction of Affordable Houses in Shanxi
OREANDA-NEWS. August 14, 2013. China Development Bank has been vigorously supporting the construction of affordable houses in Shanxi for the past few years. The Shanxi Branch of China Development Bank has accumulatively released loans of CNY30.7billion for affordable housing projects so far and has supported construction of 8.93million square meter affordable housing projects providing accommodations to 430 thousand persons.
Under pressure of huge capital demand for construction of affordable housing in Shanxi, China Development Bank Shanxi Branch proactively promoted introduction of social security funds into Shanxi Province. In 2012, China Development Bank successfully introduced social security funds amounting up to CNY1.1billion to support the reconstruction project of shantytown of Tongchuan Mining Bureau under Shanxi Coal Industry Group.
Compared with bank loans in the same period, the social security funds have the benefits of longer term and lower interest rate, which allows Shanxi Province to obtain external funds with lower cost and ease the tensions of affordable housing construction fund scale and explores a new way to finance construction of affordable housing with social security funds as well.