VND50 trillion credit package for real estate market

14:04 | 08/05/2014 Economy

VND50 trillion credit package for real estate market (VEN) - Together with a link between investors, contractors, suppliers of building materials and banks, the VND50 trillion credit package for the construction sector will create an engine for the real estate market recoverby.

Photo: Ngoc Quang

Effective use of the credit package

After the first introduction of the VND50 trillion credit package in late March 2014 in Ho Chi Minh City, a conference to deploy its credit package in Hanoi engaged the interests of enterprises and banks. A conference aimed at realizing a link between investors, contractors, suppliers of building materials and banks and creating the business environment for building materials’ professional suppliers, contributing to improving effectiveness for all subjects participating in the construction market. In addition, a conference also aimed at secure credit for banks and supporting enterprises to access the new credit package. All parties will sign on the same contract and commercial banks will finance enterprises. Meeting building material needs in a link will be done through organizers. In addition, manufacturers are not necessary for asset backing and need to correspond with building materials for deferred payment. All commercial banks need to actively approach enterprises and enterprises who incur debts with other commercial banks will be able to borrow more based on a new purpose of investors, contractors, suppliers of building materials and banks.

State Bank of Vietnam’s Credit Department Head Nguyen Viet Manh said that a link between investors, contractors, suppliers of building materials and banks would contribute to overcoming difficulties for the real estate market and creating favorable conditions for enterprises who incur debts to borrow capital and cooperate with credit organizations in controlling cash flow.

Overcoming difficulties

According to the State Bank of Vietnam’s Credit Department, the Joint Stock Commercial Bank for Investment and Development of Vietnam (BIDV), the Vietnam Bank for Agriculture and Rural Development (Agribank), the Joint Stock Commercial Bank for Foreign Trade of Vietnam (Vietcombank), the Vietnam Joint Stock Commercial Bank for Industry and Trade (Vietinbank), the Mekong Housing Bank (MHBank), the Vietnam Construction Bank (VNCB), the Saigon-Hanoi Commercial Joint Stock Bank (SHB) and the LienVietPostBank registered to participate in a link. Each bank has the right to build a chain of cooperators. Nguyen Viet Manh said that this will be the normal credit program and will not have preferential interest rate and capital as commercial banks mobilize capital by themselves. The State Bank of Vietnam is encouraging commercial banks to develop new credit products in order to resolve difficulties for enterprises, support the market and reduce bad debts. In addition, the State Bank of Vietnam is urging commercial banks to sign a framework agreement on cooperation and deployment of new credit products and will evaluate, review and consider these products to promulgate consistent legal documents.

In terms of the VND50 trillion credit package, VNCB will provide about VND10 trillion for building materials and its short-term credit will be turned over in 2014. In addition, VNCB will introduce products and services for purchasing and constructing houses with deferred payment of 15 years including many preferential policies./.

By Thuy Linh

Theo ven.vn