The ministry said real estate credit was being tightened but this should apply flexibly depending on borrowing purposes, a VnExpress report says.
Tightening credit and lower loan ratios are suggested to apply on investments such as constructing an urban complex or office building, starting a new property project and building houses for sale. Credit for land-use right acquisition and site clearance compensation are also recommended to be limited.
The move was made in the wake of a regulation issued by the central bank requiring commercial banks to reduce the ratio of real estate credit in their outstanding loans to less than 22% by Thursday and below 16% by the end of this year.
Nguyen Van Giau, governor of the central bank, told VnExpress that he would consider the regulation on property loans. However, in the short-term, property credit should be tightened as scheduled.
The real estate market has become sluggish in most segments since the end of April and some experts in the industry are worried that the situation will be more serious if real estate loans continue to be squeezed.