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SBV proposes 2.3 billion USD package for real estate revival

The State Bank of Vietnam has submitted a credit package worth of 50 trillion VND (2.3 billion USD) to support the local commercial housing market during its recovery period.
The State Bank of Vietnam has submitted a credit package worth of 50trillion VND (2.3 billion USD) to support the local commercial housingmarket during its recovery period.

The announcement about thepackage being submitted to the Government was made by an official of theMinistry of Construction last week at a seminar in Ho Chi Minh City.

Loans extended from the package will carry an interest rate of 7percent per year for the first 10 years, Deputy Minister of ConstructionNguyen Tran Nam said at a seminar on property trading - Opportunitiesand Challenges in the Recovery of the Market - organised by the VietnamReal Estate Association and the National Economic University.

The loans can get an extension of five or 10 years, with a suitableinterest rate that is adjusted according to existing market situation,he added.

Nam said the local property market has startedrecovering because the number of successful transactions on the propertymarket has risen strongly and the property inventory has been halved,reported BizLive website.

Meanwhile, lending for the propertysector at banks rose sharply to 300 trillion VND (14.1 billion USD),doubling the total value of loans seen at the end of 2012.

At present, 15 banks have been permitted to extend loans from the 30 trillion VND package for social housing projects.-VNA

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