PM directs SBV to continue with disbursement until package fully exhausted.
In the monthly resolution from the government meeting for March, Prime Minister Nguyen Tan Dung directed the State Bank of Vietnam (SBV) to retain the preferential interest rate from the housing credit support package until the full VND30 trillion ($1.34 billion) has been disbursed.
The direction was made based on the previous Resolution No. 02/NQ-CP signed on July 1, 2013, which indicated the day the support housing credit would take effect for a 36-month period was June 1, 2013. The SBV will therefore cease extending funds from the package to commercial banks on June 1, 2016. On March 22, however, the SBV sent official documents to the Prime Minister seeking a solution if disbursement wasn’t completed by June 1.
According to the SBV, as at March 10 commercial banks had committed to granting VND30.12 trillion ($1.35 billion) to 46,246 customers and disbursement stood at VND21.32 trillion ($956.2 million), or 71.07 per cent of the total amount of the package.
On March 29 a document sent to commercial banks from the SBV stated that from March 31 the latter would not be permitted to grant new credit from the package because its capital had been exhausted.