On April 01, 2023, the State Bank of Vietnam (SBV) issued Document No. 2308/NHNN-TD to the commercial banks, the SBV provincial and municipal branches providing guidance on a number of subtances and requesting to implement the lending program targeting projects on social housing, workers’ housing, renovation and reconstruction of old apartment buildings in line with Resolution No. 33/NQ-CP of the Government.
Implementing the assigned tasks as stated at Resolution No. 33/NQ-CP dated March 11, 2023 of the Government requiring a number of measures to remove the difficulties and develop the real estate market in a safe, healthy and sustainable manner, based on the agreement of the 4 State-owned commercial banks (Agribank, BIDV, Vietcombank, Vietinbank), the SBV has provided some guidance and requested the commercial banks, the SBV provincial and municipal branches to urgently implement this program.
Accordingly, the lending targets (customers) of the Program are: legal entities, individuals investing into projects or buying units at a project of social housing, workers’ housing, renovation and reconstruction of old apartment buildings on the list of projects announced by the Ministry of Construction in accordance with the relevant regulations, including: customers who are the developers of such projects (investment owners) and customers who are the buyers of the units in such projects (buyers).
About the lending principles: Customers must meet the criteria for receiving the support policy on social housing, workers’ housing, renovation and reconstruction of old apartment buildings in line with the provisions of law and the guiding documents of the Ministry of Construction; meet the conditions for borrowing capital as prescribed by law. Each buyer is only allowed to access one loan as prescribed in this Program to buy one unit in a project on the list of projects announced by the Ministry of Construction. Each project of one investment owner is only allowed to borrow capital as prescribed in this Program once.
The disbursement period of the Program is until the total disbursed amount reaches VND 120,000 billion, but not exceeding December 31, 2030.
The application period of the preferential interest rates for the investment owners is 03 years and for the buyers is 05 years from the date of disbursement, but not exceeding the loan terms in the original loan agreement.
About the preferential lending interest rates during the above period: The lending interest rates applied until June 30, 2023 are 8.7% p.a. for investment owners and 8.2% p.a. for buyers. From July 01, 2023, every 6 months, the SBV will announce the lending interest rates during the preferential period to the commercial banks participating in this program.
After the end of preferential period, the lending interest rates shall be agreed between the commercial banks and their customers, ensuring compliance with the relevant provisions of the law; in that case the lending interest rates, or the way to calculate the lending interest rates, can be specified clearly in the loan agreement signed between the bank and the customer.
Agribank, BIDV, Vietcombank and Vietinbank shall start the implementation of this program from April 01, 2023, and issue coherent instructions for the implementation of this program in their entire systems.
Other commercial banks upon participating in this program shall follow the guidance as stated in this Document, and send written reports to the SBV informing about their participation in this program, and send written documents to the National Credit Information Center of Vietnam (CIC) to register their information exploitation.
The commercial banks shall provide loans to their customers in this Program through their own mobilized capital. The commercial banks shall be responsible for reviewing, appraising, making lending decisions in accordance with the provisions of law regarding the lending operations, and shall take responsibility for their own lending decisions; carry out debt classification, provisioning and risk management for the loans provided under this Program in line with the provisions of law.
The commercial banks are requested to send reports to the SBV on a monthly basis on the implementation results of this program; promptly report to the SBV on any difficulties and issues arising in the lending process under this Program; etc.
The SBV provincial and municipal branches are responsible for directing the implementation, monitoring the situation and supervising, inspecting the lending operations of the commercial banks participating in this Program in their areas of jurisdiction; promptly report to the SBV Governor on any arising problems; coordinate with the local authorities regarding the lending operations of the commercial banks participating in this Program in their areas of jurisdiction; promptly advise the People's Provincial and Municipal Committees to handle with any arising problems during the implementation process.
LK