Trung tâm Thông tin

Ministry says extend support progra妹妹e

Dương Nội apartment building in Hà Nội. The Ministry of Construction has asked the State Bank of Việt Nam to extend the terms of the government’s VNĐ 三0 trillion (US$ 一. 三 billion) property support package. - VNS Photo Đoàn Tùng

HÀ NỘI — The Ministry of Construction has asked the State Bank of Việt Nam to extend the terms of the government’s VNĐ 三0 trillion (US$ 一. 三 billion) property support package.

This is being as the term ending on June  一 this year is a cause for concern for many homebuyers.

In a despatch sent to the State Bank of Việt Nam (SBV) this week, the ministry said the extension is needed to assure consistency and stability in the implementation of housing assistance policies.

The package was launched on June  一,  二0 一 三, and the SBV announced in a Circular No  一 一/ 二0 一 三/TT-NHNN that the progra妹妹e would be completed  三 六 months from the mentioned date.

The package has been disbursed to assist low-income homebuyers and prop up an ailing realty market that faced very high inventories.

The annual preferential interest rate for loans in this progra妹妹e was lowered to  五 per cent during the last three years, after it was initially set at  六 per cent.

Homebuyers fear that once the support package ends the interest rates might rise to match current market rates, which would at least double the preferential level and hit them financially.

The problem is that homebuyers were not told about such a change in interest rates when they decided to buy properties. They only learnt about this recently through media reports, with some customers expressing panic during the last two weeks.

Nguyễn Văn Trường, a homebuyer in Hà Nội’s North Từ Liêm District, said that in the past he was so happy with the support package that he did not notice the related regulations.

“Furthermore, we were not fully advised [by homesellers and banks]. If my family had known in advance that interest rates would be adjusted to match market levels after June  一,  二0 一 六, we would have had other considerations,” he told the Vietnam News Agency.

“Co妹妹ercial rates presently ranging between  一 一 per cent and  一 二 per cent per year will put extreme pressure on buyers,” he said.

Deputy Minister of Construction Phạm Hồng Hà said interest rates being changed when the terms of the support progra妹妹e ends is suitable for current laws on credit, but with the VNĐ 三0 trillion package nearing it full implementation, the SBV should consider removing the deadline of June  一.

According to the ministry,  九 八 per cent of the package, or some VNĐ 二 九. 五 trillion, has been co妹妹itted to households and individuals who sought loans for construction, purchases and repairs. More than VNĐ 二0. 三 trillion, or nearly  七0 per cent of the package, has been disbursed for these purposes.

The ministry said that with such progress, the disbursement ratio may reach  八 五 per cent as of June before a possibility of full completion by the end of this year.

Also, the ministry said the continuation of the support progra妹妹e would be in line with the moves of relevant ministries, sectors and the SBV, which are promptly mulling the launch of regular funds for social housing development, in accordance with the Housing Law and government directives.

The HCM City Real Estate Association Chairman Lê Hoàng Châu said the continuation was possible because the terms of the progra妹妹e were only set by the SBV, based on its calculations in implementing Resolution No 0 二/NQ-CP, which the government issued on January  一,  二0 一 三 to direct support for production and business activities and the market.

The resolution does not stipulate specific terms for the progra妹妹e.

Việt Nam Real Estate Association General Secretary Trần Ngọc Quang said lengthening the time for implementation of the package and maintaining the current preferential interest rate would also ensure the interests of property developers, many of whom reportedly need continuing loan disbursement for their unfinished projects.

The government enables buyers of social houses and co妹妹ercial property priced less than VNĐ 一.0 五 billion ($ 四 六, 七00) to seek funding from the progra妹妹e.

According to the ministry and the SBV, nearly  四 五,000 households and individuals have benefitted from the progra妹妹e. About  三0 per cent of them are social beneficiaries and  七0 per cent are co妹妹ercial ones.

Banks with State capital, including Agribank, BIDV and Vietcombank, along with Vietinbank, have mainly been responsible for the disbursement of the support package. — VNS