State bank to offer USD1.9 billion in loans for house buyers
  • By P.Thao | | December 28, 2012 08:23 AM
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The State Bank of Vietnam (SBV) will provide between VND20 trillion (USD952.3 million) and VND40 trillion (USD1.9 billion) for commercial banks to provide home loans at reasonable rates next 10 years.


The move was announced by SBV Governor, Nguyen Van Binh, at a recent meeting to seek  ways of easing difficulties in the real estate market. Binh added that the Government will focus on settling from VND100 trillion (USD4.76 billion) to VND150 trillion (USD7.1 billion) in bad debts in the property sector next year.

During an online meeting between the Government and localities on December 25, Deputy Prime Minister Hoang Trung Hai said, dealing with bad debts and the high inventory at many companies will be top priority of the Vietnamese Government next year.

Under Government request, localities which have high real estate inventory must take steps to minimise the use of State budget for building resettlement areas, and allocate it for housing projects for low-income families, those who work in the military and students.

According to Deputy PM Hoang Trung Hai, the Government will propose a slashing of corporate income taxes to 10%, for buying, selling and leasing homes, to the National Assembly. The VAT currently applied to apartments less than 70 square metres and sold for less than VND15 million (USD714.28) per square metre will be recommended for a reduction of 30%.

Companies will also be provided with reasonable interest rates to carry out low-income housing projects. The Government will create more favourable conditions for foreign individuals and organisations to buy houses in Vietnam.

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