SBV urged to amend regulations to back real estate market

Created 26 December 2017
  • PDF
Editor Choice
(0 votes, average 0 out of 5)

HCMC – The HCMC Real Estate Association (HoREA) has written to the State Bank of Vietnam proposing the issuance of new regulations and amending the current rules to support real estate market growth, according to Dau Thau newspaper.

Kết quả hình ảnh cho real estate market

HoREA petitioned SBV to amend Circular 36/2014/TT-NHNN and Circular 06/2016/TT-NHNN in a way that allows credit institutions and branches of foreign banks to continue using parts of their short-term deposits to make long-term loans for homebuyers and developers.

HoREA put forth two proposals.

In the first proposal, the central bank is asked to continue allowing credit institutions and branches of foreign banks to use 50% of their short-term funds for making medium and long-term loans next year. The policy will help support the growth of the economy as well as the property market.

As for the second proposal, HoREA agreed with a maximum ratio of 45% of short-term funds being used as medium and long-term loans between January 1 and December 31 next year stated in a draft circular amending and supplementing Circular 36/2014/TT-NHNN.

Besides, HoREA made proposals relating to the implementation of supporting policies for those purchasing affordable commercial and social housing.

HoREA proposed SBV launch housing credit packages to support buyers of social and commercial houses valued at some VND1 billion each according to Resolution 46/NQ-CP of the Government.

The central bank should allocate VND1 trillion to four credit institutions, namely Vietcombank, Vietinbank, Agribank and BIDV, to offer preferential loans for customers in need of social houses.

HoREA also proposed the National Assembly, the Government and SBV annually offer credit lines totaling VND1-2 trillion until 2020 for buyers of social houses with an annual interest rate of 4.8%.

The plan should be implemented by Vietnam Bank for Social Policies and four above-mentioned banks to effectively implement social housing policies.

In addition, incentives should be offered for investors of social housing projects in line with the Housing Law, especially social houses for rent, to reduce costs of such homes.


Source: ThesaigonTimes

Maybe You Also Interesting :

» Loans to trade, services sector hit US$176.2 billion in 2017

Outstanding loans to the trade and services sector last year rose by 19 per cent against the end of 2016 to nearly VND4 quadrillion (US$176.21 billion), the...

» VN’s resort property market gains popularity among wealthy

As Viet Nam’s tourism thrives, the resort property market has begun to attract high net worth individuals.

» VPBank posts $356.6 million pre-tax profit

Việt Nam Prosperity Joint Stock Commercial Bank (VPBank) posted a pre-tax profit of more than VNĐ8.1 trillion (US$356.6 million) in 2017, registering a 65...

Popular News Categories:

- Asia & Asean  |  EU & Russia  |  America

- Facts  |  Urban  |  Faculty  |  Environment

- Business  |  Finance  |  Market Health

- Destination  |  Cuisine  |  Arts Music

- Cinema  |  Soccer  |  Sports  |  IT & Internet