HCM City Banks Lend VND61Tln to Property Sector So Far
Outstanding loans of commercial banks in HCM City for real estate projects have reached VND61,000 billion to date, accounting for more than half of total loans of Vietnamese banking system for the sector.
Of the figure, VND18,506 billion were lent for house buildings and reparations while loans for urban complex constructions remained modest at VND6,093 billion, statistics from the State Bank of Vietnam showed.
The statistics also reported that commercial banks in Vietnam have so far lent VND115 trillion to property projects, making up for 9.15 per cent of total outstanding loans of domestic banking system.
Vietnam's property market has been frozen for a long time with many real estate companies in danger of facing bankruptcy and handing their game to foreign players.
Experts believe that domestic real estate market will not recover until 2011 while the first signs of recovery can not be seen until early 2009.
Therefore, what most real estate developers want nowadays is for banks to extend the deadlines for their debts rather than lower lending interest rates. (Labor)
Vietnamese
