Deputy Minister of
Construction Pham Hong Ha has asked the State Bank of Vietnam to extend the
disbursement time for the VND30 trillion (USD1.4bn) real estate stimulus
package for low-income earners.
State Bank of Vietnam to stop
disbursing the package
The package, which was
launched in June 2013, offers loans to property developers at low interest
rates of around 3-3.5 percent per year to build apartments for low-income
people. From June 1, the State Bank of Vietnam will stop disbursing the
package in accordance with the government's set target stated in the circular
issued in 2013 about supporting businesses and dealing with bad debts.
After receiving the news, Ha
voiced the concern that firms that already made loans but haven't had their
money disbursed by June would have to then cope with high interest rates.
This would have a negative effect on promoting low income housing.
According to Ha, after three
years, loan agreements worth over VND29.5trn have been made and over
VND20.3trn, or about 70 percent of the package, have been disbursed. At this
rate, 85 percent of the package will be disbursed by June and 100 percent by
the end of this year. Nearly 50,000 low-income households have benefited from
this package. Moreover, Government Resolution 100 issued in 2015 stated that
the government would appoint some banks to regularly offer preferential loans
for social housing projects.
Ha asked the State Bank of
Vietnam to extend the deadline. In a situation where the deadline cannot be
extended, the State Bank should still let real estate investors and apartment
buyers, who meet requirements and already made loan agreements but haven't
had their money disbursed, to borrow money and pay only the preferential