Construction Ministry Proposes Deadline Extension for VND30 Trillion Credit Package
The Ministry of Construction recently asked the State Bank of Vietnam (SBV) to extend the deadline for disbursement of the VND30 trillion preferential credit package.
The ending of the VND30 trillion low-rate credit package from June 1, 2016 shocked the public and reportedly hurt companies and individuals borrowing money from the package. Disbursements after the deadline will be subject to the ordinary commercial interest rate, which will be negotiated between lenders and borrowers.
The ministry also admitted that the ending was specified in Circular No. 11 of the SBV issued in May 2013. After three years of deployment, the pledge value reached VND29.5 trillion or over 98 per cent of the package value and the disbursement value was VND20.3 trillion, or nearly 70 per cent.
The ministry proposed that the SBV consider an extension to the deadline if the disbursement value is below the pledge value after June 1. In case the deadline is not extended, the SBV should guide pledged customers to apply for loans specified in Circular 25/2015 from the State Budget to offset the added interest rates.
Nearly 45,000 customers borrowed VND21.7 trillion, of which 14,000 customers purchased social houses, 24,600 customers bought commercial houses and nearly 5,500 customers improved their current housing. Given the progress in recent months, when the deadline comes, 85 per cent of the package value will be disbursed.
Bao Chau
Vietnamese
