China's key railway projects to get bank loans

SHANGHAI: China's Ministry of Railways has won approval from key departments that will enable banks to provide more loans in support of major railway projects, the China Securities Journal reported on Friday, citing an unidentified source.

The rail ministry has been struggling with surging borrowing costs in the domestic bond market and has been starved of credit lines from banks since a fatal high-speed train crash in July cast doubt on its credibility and operational ability.

The move to secure bank loans for the ministry comes just days after the government halved the income tax levied on coupon earnings of bonds issued by the ministry, which was aimed at making railway bonds more attractive.