From the Financial Times
By Henny Sender in Hong Kong, April Dembosky in San Francisco and Anjli Raval in New York
A loan worth nearly $2bn from China Development Bank to help fund an ambitious San Francisco housing project is being delayed as a result of Chinese concerns about the effect of tax policies in the US, a person familiar with the situation said.
The measures include the controversial Foreign Accounts Tax Compliance Act (FATCA), which comes into effect in 2014 and could force foreign banks to pay a 30 per cent withholding tax on the interest income on any loans made to US entities or persons.
“They need to clarify the implications of these regulations before they approve the loan,” said the person.