Hanoi (VNA)- The new Circular of the State Bank of Vietnam (BEV) on the lending activities of credit institutions and branches of foreign banks does not prohibit granting loans to clients to implement real estate projects.
According to the head of the BEV’s Monetary Policy Department, Pham Chi Quang, the BEV and the banking system always create favorable conditions to support real estate business and the sustainable development of the real estate market.
In Circular 06/2023/TT-NHNN, which will enter into force on September 1, the BEV only regulates that credit institutions cannot lend to clients for payments of capital contributions under respective contracts and investment cooperation or of business in the execution of investment projects that do not meet the conditions to be placed on the market in accordance with the laws, including the Law of Real Estate Business.
Specifically, the new rule aims to improve the efficiency and security of the system of credit institutions; limit and move towards the elimination of cross-ownership, concentration of loans for projects in the same ecosystem, the concealment of refinancing, in contribution to guaranteeing economic security and a real-estate market safe and sustainable, and also protect individual investors.
In addition, the new Circular contains many regulations to create more favorable conditions for clients to access bank loans.
The BEV also added new provisions such as loans to customers to pay debts at other credit institutions, to consumer activities, including home purchases.
The BEV will closely follow the evolution of the market, as well as the comments of credit institutions, companies and industry associations to make adjustments and supplements to the Circular in order to ensure the credit activities of banks.
Earlier, Vietnamese Prime Minister Pham Minh Chinh chaired a conference call to assess the implementation of the Government Resolution on Measures to Eliminate Difficulties and Promote Real Estate Market Development.
Pham Minh Chinh requested the ministries, branches and localities to urgently carry out the tasks to solve and promote the safe, healthy and sustainable development of the real estate market; promote social housing projects, disburse public investment capital and preferential loans to create new momentum for productive and business activities.
At the same time, he asked the State Bank of Vietnam to continue reviewing credit loans for real estate businesses.
According to official data, the credit debt scale is constantly increasing over the years to reach about USD 115.4 billion, equivalent to 21.63% of the total outstanding loan of Vietnam’s economy./.
2023-08-17 09:16:34
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