Regulation of real estate credit is emphasized from different perspectives: 1) stricter management of real estate development loans; 2) strengthened management of housing consumption loans, especially prohibition of mortgage refinance loans and additional mortgage loans for unspecified purposes and fluctuating with the valuation of real estate; 3) guidance of individuals’ consumption and investment and higher minimum down payment ratio and lending interest rate for second home mortgages; 4) inclusion of solely foreign-invested commercial banks and joint-stock commercial banks into the regulatory policy system; 5) strengthened credit information management in the real estate sector to fully leverage the credit information system that includes both enterprises and individuals.
Significant volumes of official financing, coupled with the further development of the domestic debt market, will prevent the need for monetary financing of the sizeable budget deficit. Despite an increase in the government's tax revenues and domestic borrowing, these funds are not enough to finance the considerable expenditures of the state budget in wartime and during the post-war recovery.