The Government has granted a credit stimulus package, amounting to VND30 trillion (nearly US$1.5 billion), to shore up the real estate sector.
The Head of the State Bank of Vietnam (SBV)’s Credit Department, Nguyen Viet Manh, said on May 9 that a circular guiding the disbursement of the bailout package will be released next week.
This shows the government’s great effort in the current context of limited budget, Manh said, adding that the package would offer property developers loans with low interest rates, hovering around 6 percent/year.
The SBV will also allow commercial banks to provide credit loans to those who rent or buy houses for low-income earners, he added.
Vu Xuan Thien, an official of the Construction Ministry, revealed that his ministry and the central bank have weighed up the pros and cons of the circular to ensure it will be brought to life as soon as it is released.
However, he said, it is essential to define conditions for lending and identify subjects to incentive loans.
Source : VOV online