VND30 TRILLION PROPERTY SUPPORT PROGRAMME STILL UNDERWAY: OFFICIAL

SBV Circular 11/2013/TT-NHNN, which took effect on June 1, 2013, stated that the programme would be carried out within 36 months from the effective date.

The package has been disbursed to assist low-income homebuyers and prop up an ailing realty market that faced too high inventories.

The annual interest rate for loans in this programme was lowered to 5 per cent during the last two years, after it was initially set at 6 per cent. The 5 per cent rate will be maintained this year, according to the central bank.

Banks with State capital, including Agribank, BIDV, Vietcombank, and Vietinbank, along with MHB, have mainly been responsible for the disbursement.

Several joint stock commercial banks, such as VPBank, TPBank, PVcombank, and Eximbank, in addition to SHB and OCB, have also been designated to take part in the programme.

Hong said the SBV would direct relevant agencies to check the disbursement issue. It was possible that some banks ceased lending to meet their credit quotas at the end of last year, and would resume the financing this year.

She told the press that the authorities would also verify information and treat any bank which might complicate procedures in carrying out the property support lending.

Meanwhile, the central bank said the committed loans within the programme were still growing strongly, reaching some VND1.88 trillion ($83.56 million) last December alone. December's disbursed amount was also significant at VND2.45 trillion ($108.89 million).

The Ministry of Construction has also reported progress of the programme.

VnEconomy online reported, citing the ministry's data, that the total loans committed within the programme reached nearly VND27 trillion ($1.2 billion), or 90 per cent of the VND30 trillion package, as of December 31, 2015.

About VND17.71 trillion ($787.11 million), or some 60 per cent of the package, was disbursed as of the end of last year.

SBV Deputy Governor Nguyen Phuoc Thanh told a meeting in HCM City last month that the central bank would, however, control property loans this year.

This was in line with a resolution on socio-economic development in 2016, in which the government asked the central bank to strictly regulate loans allocated in high-risk areas.

This would be part of the central bank's policies to help the country control inflation, maintain macro-economic stability and accelerate economic growth.

Source: VIR