State Bank seeks measures to bolster real estate market
04-02-2013
Low-income earners will have chances to access cheaper mortgages for purchases of apartments of less than 70 square metres
The SBV will consider removing real estate investment and trading from the list of discouraged industries in 2013.
It will finalise a plan to settle bad debts plaguing financial institutions and another plan on the establishment of a national asset management company.
The bank plans to issue a regulation that allows low-income earners and office staff to access cheaper mortgages for purchases of apartments of less than 70 square metres at under VND15 million (USD718.7) per square metre. The regulation is expected to be issued in the first quarter of this year.
The bank intends to set aside from VND20-40 trillion (USD958.3-1.91 billion) for refinancing services in order to stimulate state-owned commercial bank lending to potential house owners.
The SBV will seek measures to raise long-term capital for the real estate market by studying the establishment of a national housing guarantee agency in order to diversify capital sources.
Tighter control will be applied to loans for investment projects by providing more credit products that foster tighter coordination between the investor, contractors, material suppliers and house buyers.
It will require financial institutions to draft plans to deal with bad debts held by real estate firms. New loans will only be granted to real estate projects by experienced investors with proven financial capacity.
The SBV will also intensify the inspection and supervision of real estate projects to ensure safe and efficient investment.
