Deputy Prime Minister Hoang Trung Hai has asked commercial banks to actfast and remove impediments to disbursement of the 30 trillion VND (1.5billion USD) housing stimulus package introduced by the government.
The package aims to encourage development and purchase of socialhousing projects, giving a growth impetus to the stagnant real estatesector.
At a recent meeting organised by the CentralSteering Committee on Housing Policy and the Real Estate Market, Haisaid social housing development projects that have been signed beforeJuly 1 must be allowed to borrow from the package.
The 30 trillion VND (nearly 1.5 billion USD) package to shore up the real estate sector was announced mid-May.
The package offers property developers loans with low interest ratesof around 6 percent per year. The central bank also asked commercialbanks to provide loans to low-income earners who want to rent or buyhouses.
Representatives of social housing projects andlocalities said at the meeting that the government's recent measures tosupport the real estate market particularly the 30 trillion VND stimuluspackage, have not been brought into full play because of obstacles inthe banking sector.
For their part, the banksadmitted disbursement of the 30 trillion VND stimulus package is slow,but added they are being cautious in their lending to avoid a worseningof the bad debt problem.
A Vietinbank representativesaid that his bank has so far signed credit agreements worth 20.3billion VND (1 million USD) with 66 customers.
Meanwhile, Vietcombank has lent 11.7 billion VND (510,000 USD) to 50property buyers, but has signed no credit contract with project owners.
A BIDV representative said that the bank has signed23 credit agreements but has not disbursed funds contracts because legalcriteria to identify who are low-income earners have not been finalisedyet.
Nguyen Dong Tien, deputy governor of the StateBank of Vietnam , said disbursement of the stimulus package issluggish because supply of social housing is still limited andprocedures for mortgaging assets are rather complicated.
Nguyen Ngoc Thanh, chairman of the Vietnam Real Estate Association,said that some banks have refused customers saying they do not haveguidelines for lending (under the package) from their head offices.
"The 30 trillion VND housing stimulus package is a very sound policyof the Government, but highly complicated procedures prevent people whoare in real need of housing from getting loans," Thanh said.
Tien of the central bank said the bank would set up a working group tooversee implementation of the package and ensure its effectiveness.-VNA
The package aims to encourage development and purchase of socialhousing projects, giving a growth impetus to the stagnant real estatesector.
At a recent meeting organised by the CentralSteering Committee on Housing Policy and the Real Estate Market, Haisaid social housing development projects that have been signed beforeJuly 1 must be allowed to borrow from the package.
The 30 trillion VND (nearly 1.5 billion USD) package to shore up the real estate sector was announced mid-May.
The package offers property developers loans with low interest ratesof around 6 percent per year. The central bank also asked commercialbanks to provide loans to low-income earners who want to rent or buyhouses.
Representatives of social housing projects andlocalities said at the meeting that the government's recent measures tosupport the real estate market particularly the 30 trillion VND stimuluspackage, have not been brought into full play because of obstacles inthe banking sector.
For their part, the banksadmitted disbursement of the 30 trillion VND stimulus package is slow,but added they are being cautious in their lending to avoid a worseningof the bad debt problem.
A Vietinbank representativesaid that his bank has so far signed credit agreements worth 20.3billion VND (1 million USD) with 66 customers.
Meanwhile, Vietcombank has lent 11.7 billion VND (510,000 USD) to 50property buyers, but has signed no credit contract with project owners.
A BIDV representative said that the bank has signed23 credit agreements but has not disbursed funds contracts because legalcriteria to identify who are low-income earners have not been finalisedyet.
Nguyen Dong Tien, deputy governor of the StateBank of Vietnam , said disbursement of the stimulus package issluggish because supply of social housing is still limited andprocedures for mortgaging assets are rather complicated.
Nguyen Ngoc Thanh, chairman of the Vietnam Real Estate Association,said that some banks have refused customers saying they do not haveguidelines for lending (under the package) from their head offices.
"The 30 trillion VND housing stimulus package is a very sound policyof the Government, but highly complicated procedures prevent people whoare in real need of housing from getting loans," Thanh said.
Tien of the central bank said the bank would set up a working group tooversee implementation of the package and ensure its effectiveness.-VNA
