VND30-trillion housing support package proposed to be extended

The State Bank of Vietnam (SBV) on March 23 announced that it has submitted a proposal to the government to extend the VND30-trillion (US$1.35 billion) housing credit package until the package is fully disbursed.

Many home buyers worry that they would have to pay commercial interest rates for the loans disbursed after the conclusion of the package on June 1.

If the credit package has not been fully disbursed by June 1, 2016, the SBV will make a report to the government to consider the extension of the package until it completes disbursement so that low-cost home buyers could continue to enjoy loans with preferential interest rates.

The suggestion was made amid the worries of many home buyers under the credit package that they would have to pay commercial interest rates for the loans disbursed after the conclusion of the package on June 1.

As of March 10, 2016, commercial banks had pledged loans of over VND30.1 trillion for more than 46,200 customers with over VND21.3 trillion disbursed.

Earlier, Deputy Minister of Construction Pham Hong Ha also sent a proposal to the SBV to ask for the continued disbursement of the credit package.

The housing credit package was launched in June 2013 aiming to assist home buyers and housing developers in gaining access to bank loans with a preferential interest rate of 5% per year.

(Source: NDO)