A credit package worth 120 trillion VND (5.7 billion USD) would helpdevelop the local property market, said Phan Thanh Mai, general directorof the Vietnam Bank for Construction (VNBC).
Mai told aconference on developing professional construction industry markets,jointly organised by the bank and Thien Thanh Group and held in Hanoiearly this week, that a 50-trillion VND (2.38 billion USD) package hadbeen offered by different banks.
Seven other banks had alsoregistered 70 trillion VND (3.32 billion USD) with the State Bank ofVietnam (SBV) as normal loans. In total, 120 trillion VND will beavailable for real estate credit.
Loans under the 50-trillion VNDpackage will have to comply with the standard requirements. This willhelp manage cash flow and create market confidence. New projects have tobe feasible to be eligible for loans.
Mai said the package,based on a partnership between investors, contractors, building materialsuppliers and banks, would not only reduce credit risks for commercialbanks but would also lower construction costs and property inventories.
"Wedo not expect the package to restructure the country's property market.However, it can reverse the market's stagnancy and create a new creditflow," he stated.
He added that real estate inventories, apartfrom building-material inventories, amounting to 92 trillion VND (4.38billion USD), were in the market at present.
Nguyen Viet Manh,director of the central bank's credit department, said the central bankattended the meeting in order to seek a market building model foreffective implementation.
Manh said property and buildingmaterial markets had been facing difficulties for years, adding that thenew credit package would be one of the solutions to these problems.
Accordingto the VNBC, three banks —VNBC, Agribank and BIDV — have registeredwith the credit department to participate in the 50-trillion VNDpackage.
The VNBC is also negotiating with other banks,including ACB, Sacombank, LienVietPostBank and Ocean Bank, to join thepackage. Apart from these, some other banks, such as MB, Maritime Bankand VP Bank, have also been included in the negotiations.
Earlylast month, a rumour about a 100-trillion VND (4.76 billion USD) creditpackage for the domestic property market had caught the attention of thepublic.
Le Xuan Nghia, former vice chairman of the NationalFinancial Supervisory Committee, said the new credit package would nothave the drawbacks of the previous one worth 30 trillion VND (1.42billion USD).
Therefore, loans granted under the new proposedcredit package would be commercial loans with lower interest rates andnot preferential loans granted under the 30-trillion VND package.-VNA
Mai told aconference on developing professional construction industry markets,jointly organised by the bank and Thien Thanh Group and held in Hanoiearly this week, that a 50-trillion VND (2.38 billion USD) package hadbeen offered by different banks.
Seven other banks had alsoregistered 70 trillion VND (3.32 billion USD) with the State Bank ofVietnam (SBV) as normal loans. In total, 120 trillion VND will beavailable for real estate credit.
Loans under the 50-trillion VNDpackage will have to comply with the standard requirements. This willhelp manage cash flow and create market confidence. New projects have tobe feasible to be eligible for loans.
Mai said the package,based on a partnership between investors, contractors, building materialsuppliers and banks, would not only reduce credit risks for commercialbanks but would also lower construction costs and property inventories.
"Wedo not expect the package to restructure the country's property market.However, it can reverse the market's stagnancy and create a new creditflow," he stated.
He added that real estate inventories, apartfrom building-material inventories, amounting to 92 trillion VND (4.38billion USD), were in the market at present.
Nguyen Viet Manh,director of the central bank's credit department, said the central bankattended the meeting in order to seek a market building model foreffective implementation.
Manh said property and buildingmaterial markets had been facing difficulties for years, adding that thenew credit package would be one of the solutions to these problems.
Accordingto the VNBC, three banks —VNBC, Agribank and BIDV — have registeredwith the credit department to participate in the 50-trillion VNDpackage.
The VNBC is also negotiating with other banks,including ACB, Sacombank, LienVietPostBank and Ocean Bank, to join thepackage. Apart from these, some other banks, such as MB, Maritime Bankand VP Bank, have also been included in the negotiations.
Earlylast month, a rumour about a 100-trillion VND (4.76 billion USD) creditpackage for the domestic property market had caught the attention of thepublic.
Le Xuan Nghia, former vice chairman of the NationalFinancial Supervisory Committee, said the new credit package would nothave the drawbacks of the previous one worth 30 trillion VND (1.42billion USD).
Therefore, loans granted under the new proposedcredit package would be commercial loans with lower interest rates andnot preferential loans granted under the 30-trillion VND package.-VNA
