The State Bank of Viet Nam and the Ministry of Construction on May 15 issued Circular 11 announcing an annual interest rate of 6% for loans used to purchase social houses.
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Under Circular 11, which guilds the implementation of Government Resolution 02 on solutions to remove difficulties against production and business, support the market and deal with non-performing loans, social house buyers’ financing will have a maturity of ten years.
The central bank will use VND 30,000 billion (US$1.5 billion) to support the five commercial banks which were selected to undertake the loans in 36 months since Circular 11 takes effect on June 1, 2013.
The Circular stipulates that the State Bank of Viet Nam will yearly define and publish preferential lending interest rate for the upcoming years in December, which is required to be equal to half of the average lending interest rate in the market but less than 6% per year.
The move aims to support those who want to buy and hire social houses with an area of under 70 square meters and at a cost of less than VND15 million per square meter.
The five eligible commercial banks include the Viet Nam Bank for Agriculture and Rural Development (Agribank); the Stock Commercial Bank for Investment and Development of Viet Nam (BIDV); the Viet Nam Joint Stock Commercial Bank for Industry and Trade (Viettinbank), the Joint stock commercial Bank for Foreign Trade of Viet Nam (Vietcombank) and the Mekong Housing Bank.
The same day, the Ministry of Construction also released Circular 07 specifying those who are eligible for borrowing loans for social housing./.
Source : VGP