Foreign Banks Continue Loaning Real Estate Traders in Vietnam
Foreign banks in Vietnam, with powerful financial capability, are trying to provide more loans to real estate traders while local banks have turned off the ‘real estate credit valve’ as requested by the State Bank of Vietnam, state media reported on March 5.
Prudential Vietnam, the UK-headquartered insurer, through its Prudential Vietnam Fund Management Company (PVN FMC), has announced the program on lending to the clients who have permanent and long term residential registration books.
All the clients, who have the monthly income of no less than VND4.8 million, can access the loans with no mortgage assets.
HSBC and ANZ, the two well known foreign banks in Vietnam, are now also planning to conquer the market of funding individual house purchase deals. French BNP Paribas has joined forces with Orient Bank to provide real estate credit.
Most recently, IFC has loaned VND300 billion to Sacombank to help the bank carry out the program on funding house purchases and repair deals with preferential interest rate.
Several domestic commercial banks, in fact, have resumed real estate loaning, but they only give loans in dribs and drabs. Only loyal clients can access bank loans, while individual clients seem to have no way to get bank loans.
Tran Anh Tuan, director of the HCM City Housing Development Bank, said his bank follows very strict policies in funding real estate purchase deals in order to limit lending to speculators. The bank only provides loans to the projects that get investment licenses already.
The fact that banks tighten real estate credit has made big difficulties for many real estate firms and forced them to mobilize capital through bond issuance to survive. (VietnamNet)
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