SBV adds eight more banks to the government's housing credit support package.
The State Bank of Vietnam has approved the addition of eight banks to the list of those permitted to lend under the government’s credit housing support package, raising the total number of banks to 13.
The eight banks are the Saigon Commercial Bank (SCB), the Vietnam Export Import Bank (Eximbank), Bao Viet Bank, PvComBank, Tien Phong Bank (TPBank), Orient Commercial Joint Stock Bank (OCB), Vietnam Prosperity Bank (VPBank), and the Southeast Asia Commercial Joint Stock Bank (SeABank). The banks will be allowed to lend based on the support package.
The government previously named five banks on the list, which all have 50 per cent of their charter capital owned by the State: the Vietnam Bank for Agriculture and Rural Development (Agribank), the Bank for Investment and Development of Vietnam (BIDV), the Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank), the Bank for Foreign Trade of Vietnam (VietcomBank), and the Mekong Housing Bank (MHB).
The government’s credit housing support package, worth VND30 trillion ($1.4 billion), has been implemented since June 2013 under Resolution No.61 of the government and aims to assist low-income earners to purchase housing. The interest rate is set at a maximum of 5 per cent per annum and the loan term is 15 years.
Although it was expected to create momentum in the real estate market, the support package has been as effective as expected. After more than a year it had disbursed just one-third of its funds.