Intellasia News Services -- Credit institutions ordered to continue property lending

Credit institutions ordered to continue property lending
Source: 19-NOV-2008 Intellasia | VNA
19 Nov, 2008 - 7:06:00 AM
Before the complaint of real estate companies on failing to borrow bank loans, the State Bank of Vietnam (SBV) ordered credit institutions to continue lending for feasible property projects with the matured payment affordability.

According to the SBV-HCM City Branch, the city's property outstanding loans were 61 trillion dong, accounting for 15% of total figure. Up to the end of October 2008, the city has 151 uncompleted property projects. Meanwhile, banks committed to lend 14.338 trillion dong, of which 9.320 trillion dong was disbursed already.

Regarding the difficult issues relating to the bank loan accession of enterprises, SBV reported that the transparency of the city's banking system is fairly good. The banks with the capital surplus announced to provide a certain volume of capital to SMEs. The number of capital borrowing applications being approved takes up 85.6% and 14.4% is under consideration, mainly borrowing loans for car purchase, luxury consumer demands, and steel traders.