large stock of unfinished housing is among the major problems to be addressed, the fund says. Ed FreemanChina is still facing a real estate crisis and its government has a lot of work to do to fix the problems, the International Monetary Fund (IMF) said on Friday.The cash-strapped property sector, which accounts for a quarter of the Chinese economy, has struggled with defaults and stalled projects, hitting market confidence and dragging down growth in the world’s second-largest economy.IMF economists welcomed recent measures by the country’s authorities to ease restrictions on financing for the sector but pointed out that “additional action” will be needed in order to end the real estate crisis.“If you look at the measures, a lot of them address financing issues for the developers that are still in relatively good financial health, so that will help,” deputy director in the IMF’s Asia Pacific Department, Thomas Helbling, told CNBC.However, property developers are still facing “severe” difficulties, he noted, adding that “the issue of the large stock of unfinished housing more broadly is not yet addressed.”
this article was originally published by RT.
