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Changes needed to push housing stimulus package

Update: April, 22/2014 - 09:32
Interest rates for loans provided in the VND30 trillion stimulus package remain high, so only people who have mid-level and stable incomes are eligible for the loans, the ministry said. — Photo cafeland

HA NOI  (VNS) — The State should amend regulations for receiving loans as part of the VND30 trillion (US$1.42 billion) stimulus package, to promote the future disbursement of loans, according to the Ministry Construction.

Interest rates for loans provided in the VND30 trillion stimulus package remain high, so only people who have mid-level and stable incomes are eligible for the loans, the ministry said.

The ministry said, at the meeting of the Central Steering Committee on Housing Policy and the Real Estate Market on Friday in Ha Noi, that the interest rate for loans under the package declined from 6 per cent to 5 per cent per year since January, but it is still high, and only people having higher incomes have the ability to apply for the loans.

The ministry also said that by April 15, five commercial banks had pledged to provide loans worth VND3.36 trillion ($16 million), as total outstanding loans from the package reached VND1.7 trillion ($80.9 million), reported the Voice of Viet Nam (VOV).

Of these, the banks have signed contracts with commitments of granting loans worth VND1.5 trillion ($71 million) for 3,962 households.

They also have given loans valued at VND711 billion ($33.8 million) for 2,297 households buying social houses, and VND793 billion ($37.7 million) for 1,665 households purchasing commercial houses.

The banks have disbursed VND496.6 billion ($23.6 million) for 2,139 households in Ha Noi and VND146 billion ($6.9 million) for 433 households in HCM City.

Meanwhile, the banks had commitments on providing loans worth VND1.86 trillion ($88.5 million) for 21 property projects, and disbursed 17 projects with total outstanding loans of VND723.8 billion ($34.4 million).

Therefore, the ministry has delivered a proposal to the Government to amend some regulations in the VND30 trillion ($1.42 billion) stimulus package to promote disbursement of the package.

It also said the time for paying back loans for individuals and households should increase from 10 to 15 years.

Further, the State should not limit areas and prices that are eligible for loans, while offering loans to State staff members and those in the armed forces in urban areas of the provinces and cities managed by the central administration who have difficulties in obtaining housing. They could receive loans to build new houses or maintain their existing houses with a maximum of VND840 million ($40 million) per person.

Meanwhile, the State Bank of Viet Nam has also proposed adding a number of commercial banks to the list of banks providing loans under the VND30 trillion package.

Also, the State Bank said that total outstanding loans provided for investment and trading of real estate during the first two months of this year increased 1.8 per cent to VND266.72 billion, as compared to the end of last year. — VNS

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