HA NOI (VNS) — The Bank for Investment and Development of Viet Nam (BIDV) has called on the Government to establish a national mortgage company to help reinvigorate the nation's stalled real estate market.
Under the proposal, the new company would be formed with charter capital of VND5 trillion (US$238.1 million) sourced from the Government, official development assistance, deposits and other sources, said BIDV chairman Tran Bac Ha
The company could also operate in refinancing and buying low-income housing loans from commercial banks, helping ease the bad debt and liquidity crises facing the banking system, Ha said.
Through its operations, the company could raise another VND50 trillion ($2.4 billion) over the next five years to finance the low-income housing market, equal to 250,000 appartments or 7.5 million square metres of low-income housing, he said.
Low-income borrowers could benefit from loans with extended terms of 15-30 years and interest rates below market rates.
BIDV would be willing to provide support during the set-up and initial operation of the company to ensure its effectiveness, Ha said.
BIDV already planned to provide VND30 trillion ($1.4 billion) in loans at preferential interest rates to help develop low-income housing during 2013-15, he added. —VNS