Commercial Banks Lend VND135 Tln to Property Developers
Total outstanding loans Vietnamese commercial banks have lent to property developers reportedly reached VND135 trillion by the end of April, the Dau Tu Chung Khoan (Securities Investment) newspaper reported.
The fund was poured into infrastructure investment, business and production and construction, the paper said, quoting the country&rsquos central bank.
Most of commercial banks have already suspended real estate lending as required by the State Bank of Vietnam (SBV), who had issued a series of credit tightening solutions to curb inflation.
The lenders, however, found it hard to take back liabilities from last year due to the frozen property market. Rocketing prices of construction materials and lending halt of banks have forced existing property development projects to stop.
Analysts forecast that the property market will have to meet many difficulties in the coming time due to impacts from macroscopic policies.
Vietnam&rsquos real estate industry, however, is almost completely reliant on the banks. If the domestic banking industry continues to restrict loans for property, the situation in the country will get worse, they said. (Investment Securities)
Vietnamese
