Slow disbursement of VND 120,000 trillion credit package
This morning, February 22, the Conference on Deployment of the project “Investment in construction of at least 1 million social housing apartments for low-income people, workers in industrial zones in the period 2021-2030” took place. 2024, Minister of Construction Nguyen Thanh Nghi briefly assessed the results of the project implementation.
According to that, in terms of the actual development of social housing, housing for workers, the Minister of Construction said that only in the period from 2021 to now, across the country, there have been 499 social housing projects implemented with a scale of over 411,000 apartments.
Minister of Construction Nguyen Thanh Nghi speaks at the program.
Regarding the implementation of the preferential credit package of VND 120,000 trillion, currently, 28 provinces have announced a list of 68 projects eligible for loans under the VND 120,000 trillion credit program with a capital demand of over VND 30,000 billion. Up to now, there have been 6 social housing projects in 5 localities disbursed with a capital amount of about VND 415 billion.
In general, in the process of implementing and implementing the project, the head of the Ministry of Construction frankly said that the implementation of the project still faces many difficulties. “The disbursement of the preferential credit package of VND 120,000 trillion is still slower than the desire and practical needs of businesses investing in social housing, housing for workers,” stressed the Minister of Construction.
According to the Minister, in addition to that, there are still obstacles and difficulties for businesses investing in social housing, housing for workers in accessing land, investment and construction procedures, credit, preferential policies.
The head of the Ministry of Construction emphasized that to achieve the goals of the project, ministries, and localities should closely follow and seriously implement the tasks set out in the project, especially reviewing planning, allocating land funds, administrative procedure reform … social housing projects. In addition, it is necessary to review the implementation of the preferential credit package of VND 120,000 trillion to have solutions to remove barriers and promote access and disbursement of this credit package.
What did the State Bank report?
At the conference, Mr. Pham Thanh Ha, Deputy Governor of the State Bank, also reported on the implementation of funding support for social housing, housing for workers, …
According to Mr. Ha, in the past time, the State Bank has always identified the priority of credit sources for social housing development. Based on that, the State Bank actively cooperated with the Ministry of Construction and related agencies to improve mechanisms and policies to remove difficulties for the deployment of social housing. At the same time, directing credit institutions to focus capital on the segment of affordable housing, housing for low-income people.
Previously, credit institutions have implemented many programs to lend social housing, housing for the poorest people, such as the program to lend social housing VND 30,000 billion. These lending programs have and are supporting tens of thousands of households to have the opportunity to access credit capital to build accommodation.
According to the Deputy Governor of the State Bank, most recently, under Resolution No. 33, the State Bank in cooperation with the Ministry of Construction implemented a loan program with a scale of VND 120,000 trillion for investors and buyers of social housing, housing for workers, and old condominium renovation projects.
The State Bank has instructed commercial banks to start lending from April 2023. The State Bank has clearly stipulated the content of interest rates, preferential period. Specifically, the interest rate for borrowing during the support period is 1.5-2% lower / year than the average lending interest rate of the 4 state banks in each period.
Since the program was launched up to now, the interest rate for investors announced in April 2023 is 8.5% / year, July is 8.2% / year. The most recent interest rate adjustment is 8% / year.
For home buyers, the initial interest rate of 8% / year (April 2023), reduced to 7.7% (July 2023) and most recently to 7.5% / year.
Mr. Ha said: “The State Bank has actively and flexibly reduced interest rates in line with market interest rates. This program is carried out with the self-raised capital of commercial banks, simplifying procedures and the most convenient conditions so far for the subjects to access capital in the program. ”
Regarding the results achieved, the leadership of the State Bank provided the latest data showing that, up to now, commercial banks have committed to providing credit for 15 projects with a committed amount of VND 7,000 billion. In these, there are 7 projects with disbursement needs, credit commitment amounting to over VND 1,800 billion. The total disbursed amount so far is over VND 500 billion.
NHNN representatives admitted that there are many difficulties and obstacles that have led to slow credit disbursement. For example, the supply of social housing is still limited, many projects do not have complete legal procedures, making home buyers unable to access capital.
On that basis, Mr. Ha emphasized: It is necessary to accelerate the disbursement progress. However, to do this, NHNN representatives believe that it requires the joint effort and determination of the departments.
