Vietnam Central Bank Asks to Review Loans for Realty Sector

The State Bank of Vietnam, the country's central bank, has said in its statement that it has requested local banks to review loans for the realty sector, which will be served as a foundation for further lending, the Ministry of Information and Communication-run Vietnamnet newswire said.

 

SBV asked credit institutions and banks to update loans for unfinished real estate projects as of Oct 31 of the year, assessing lending risks for realty sector as well as proposing measures for the next six months to come, the newswire said.

 

Vietnam's central bank also said outstanding loans by local banks totaled to VND115 trillion, accounting for 9.15 per cent of the total outstanding loans by the banking sector. Bank loans for Hanoi-, and Ho Chi Minh City-based realty projects accounted for 74 per cent of the VND115 trillion.

 

Nguyen Van Giau, SBV governor said cash is still keeping flowing into the sector, unlike outcries by realty firms. So far this year, there have been 115 realty projects costing VND14.3 trillion in Ho Chi Minh City, of which 113 projects valued at VND9.3 trillion have been disbursed.

 

Meanwhile, Andy Ho, CEO of VinaCapital said there has no foreign company which has arrived in Vietnam to buy realty projects.

 

Dinh The Hien, director of the Institute for IT and Applicable Economics said prices of apartments were down 50 per cent, much lower than 200 per cent-300 per cent growth from 2006 to 2007, proposing realty firms should continue lowering prices to boost sales. (VietnamNet)