A key pillar of the world’s second-largest economy, China’s property sector has been lurching from one crisis to another, and has been a major drag on growth over the past year. A revolt by homebuyers this month heaped more pressure on the authorities to act to quell the social unrest.

The People’s Bank of China will initially issue about 200 billion yuan of low-interest loans, charging about 1.75% a year, to state commercial banks, the paper said, citing people involved in the discussions.

The plan, recently approved by China’s State Council, will permit banks to use the PBOC loans along with their own funds to refinance stalled real estate projects, the report added.

Reuters reported this week, citing a state bank official with direct knowledge of the matter, that China planned to launch a real estate fund to help property developers resolve a crippling debt crisis, aiming for a warchest of up to 300 billion yuan (US$44.5 billion).