Tightened credit expected to stop real estate bubble
HCM CITY - In a draft document issued by the State Bank of Vietnam circulated for the opinion of financial institutions, the risk index of receivable lending for real estate and securities might be raised from 150 per cent (the lowest level) as stipulated
Maximum ratio of short-term funds used for medium and long-term loans might be adjusted from 60 per cent to 40 per cent.
The Ministry of Construction’s Department of Housing and Real Estate Market Management reported that as of November 2015, outstanding loans invested in the market was up to VND375 trillion (US$16.67 billion), a surge of 20 per cent compared to the figure of December 2014. This is the result of the Circular No 36 which was in effect from February 1, 2015.
Three activities which have the highest rate of increase in loans are, buying the right to use land with 36.3 per cent, building new urban areas |with 10.7 per cent, and investing in other real estate businesses at 11.2 per cent.
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