6 housing projects in HCM City to get 2% interest rate subsidy on loans

August, 22/2022 - 07:33
The Ministry of Construction has sent to the State Bank of Vietnam the list of social and workers’ housing projects and old apartment buildings set for renovation whose developers are entitled to subsidised loans under the Government’s Decree 31/2022/NĐ-CP.
Six housing projects in HCM City are eligible to get loans with a 2 percentage point interest rate subsidy from the Government. — Photo vietnamfinance.vn

HCM CITY — The Ministry of Construction has sent to the State Bank of Việt Nam the list of social and workers’ housing projects and old apartment buildings set for renovation whose developers are entitled to subsidised loans under the Government’s Decree 31/2022/NĐ-CP.

According to the decree, the developers will get a subsidy of 2 percentage points on the interest they have to pay when borrowing from banks.

Based on local authorities’ suggestions and its own review of the decree criteria, the ministry has approved six projects in HCM City and five in Bình Định for the subsidy.

The 11 projects are estimated to cost VNĐ9.65 trillion (US$411.6 million), with the developers borrowing VNĐ4.3 trillion ($183.4 million).

The six HCM City projects include social housing in Thủ Đức City’s Long Trường Ward with a loan of VNĐ365 billion to build 558 apartments and in Lý Thường Kiệt Street in District 10 with a loan of VNĐ570 billion and 1,245 apartments, and a rental workers’ housing project in Thủ Đức City’s Thạnh Mỹ Lợi Ward with a loan of VNĐ700 billion and 1,040 apartments.

Besides, new apartments will be built to replace decrepit ones at 23 Lý Tự Trọng and 128 Hai Bà Trưng in District 1 and at 350 Hoàng Văn Thụ in Tân Bình District, with their developers eligible for loans of over VNĐ1 trillion.

Previously, in the first phase of the programme, the ministry announced four social and workers’ housing projects in Lào Cai, Hòa Bình, Tây Ninh, and Tiền Giang provinces whose developers are entitled to the subsidised loans.

Issued in March this year, Decree 31 is part of a COVID economic recovery master programme. — VNS

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