Keeping cautious when defrosting real estate market
Le Xuan Nghia, Deputy Chair of the National Finance Supervision Council, said that the biggest worry now for the government is the bad debts arisen from the loans to the real estate sector.
Nghia said that his council is proposing the Ministry of Construction to build up a financing program to fund housing projects. The lending to the housing projects which are under implementation has also been proposed to last until the end of 2012. Especially, the people who borrow money from commercial banks to buy houses may not have to imperatively pay with their salaries, but with other kinds of incomes, if they can prove that these are legal income.
Besides, the government has also been urged to apply the policies that help resume the lending to fund house purchases of the banks, which specialize in providing that kind of credit, including the Mekong Housing Bank.
Tran Du Lich, Member of the National Assembly’s Economics Committee, said that in 2012, the Government may apply a flexible monetary policy which allows to help increase the credit, thus helping defrosting the real estate and stock markets.
Lich said that the credit policies in the time to come would focus on supporting small and medium enterprises, export companies and the fields relating to agriculture and rural development. Regarding the policy on funding real estate projects, social housing projects, and the projects in urban development programs would be prioritized in accessing loans.
Lich has also said that there is another problem that needs to be settled that the stock market has decreased too much. The real estate market has been frozen for a long time. It is necessary to defrost the markets in order to stimulate the demand.
“I believe that in the credit policy for the time to come, the issues would be considered,” Lich said.
Seeking long term capital for real estate market
According to Nghia, Vietnam has not had perfect policies on the housing issue, while big problems still exist in real estate credit. In fact, there are some banks, which were established with the tasks of providing real estate credit, namely Mekong Housing Bank and Habubank. However, the banks now all want to become commercial banks that provide all kinds of products, like other commercial banks.
“The government needs to have a strategy on housing and real estate credit, because investing in the real estate sector requites very big sums of money which far exceed the financial capability of Vietnamese people,” Nghia said.
Analysts said they now can see some signs showing that the government and relevant ministries are considering setting up the policies to revive the stock and real estate markets.
In a recent instruction, the Prime Minister asked the Ministry of Construction to build up a project on developing houses for leasing and the project on housing saving fund.
Meanwhile, HD Bank said that it is not advisable to increase the outstanding loans too sharply to any business fields. “In 2012, the safety in investment should still be the top priority task,” the banker said.
When asked about the interest rate reductions, Nghia said that this depends on the capability of the central bank to pump money into circulation. Besides, it is also necessary to consider the inflation rate, because inflation is considered an “intangible tax” imposed on people.
Phuong Nam
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