Bao Viet Securities writes of outstanding matters after SBV announces termination of housing credit support package.
Bao Viet Securities Company (BVS) has said it is necessary to retain the preferential interest rate from the housing credit support package until the total VND30 trillion ($1.34 billion) has been disbursed.
The comments were made in a report BVS penned after the State Bank of Vietnam, in a March 28 document, directed banks to cease granting new credit from the package because all capital has been exhausted.
In a report, BVS said that social housing was not going to cause a real estate bubble so the preferential interest rates should continue.
The report noted that the SBV’s document failed to mention whether the preferential interest rate is to be applied for credit already signed and set for disbursement after June 1. This is also a major matter of concern for commercial banks.
BVS also said that management units were too passive in applying the package, resulting in unnecessary confusion among borrowers.