HoREA continues to propose amendments to Circular 06/2023

Mr. Le Hoang Chau - Chairman of Ho Chi Minh City Real Estate Association (HoREA) said that the State Bank's recent issuance of Circular 10/2023/TT-NHNN suspending the implementation of some provisions of Circular 06/2023/TT-NHNN is great news for the business community, investors and consumers.

However, HoREA continues to request the State Bank to consider amending and supplementing a number of other regulations.

Firstly, HoREA proposed to amend and supplement Point d, Clause 5, Article 16 of Circular 22/2019/TT-NHNN (amended and supplemented in Article 1 of Circular 08/2020/TT-NHNN) in the direction of requesting an extension of 12 months, because in just over 1 month (October 1, 2023), credit institutions "must comply with the maximum ratio of short-term capital used for medium- and long-term lending of 30%.

HoREA continues to propose amendments to Circular 06/2023.

Second, the Association proposes that the State Bank consider allowing credit institutions to purchase corporate bonds for the purpose of restructuring their own debts.

According to HoREA, Decree No. 65/2022/ND-CP allows enterprises to issue bonds to implement investment programs and projects and restructure their own debts, so issuing bonds to restructure their own debts is legal.

And based on Clause 1, Article 94 of the Law on Credit Institutions 2010, investors have the right to propose credit loans and credit institutions are obliged to consider granting credit for this "legal capital use purpose" of investors according to the provisions of the law on credit, so it is necessary to "remove" point a, Clause 8, Article 4 of Circular 16/2021/TT-NHNN to ensure consistency and uniformity.

In addition, HoREA also recommended that the State Bank continue to review and consider amending and supplementing a number of "inappropriate" regulations in Circular No. 06/2023/TT-NHNN that businesses, associations and experts have proposed, because Circular 10/2023/TT-NHNN dated August 23, 2023 of the State Bank only "suspended the implementation of Clause 8, Clause 9 and Clause 10, Article 8 of Circular No. 39/2016/TT-NHNN (supplemented by Clause 2, Article 1 of Circular No. 06/2023/TT-NHNN) from September 1, 2023 until the effective date of the new legal document regulating these issues", but at present there is no "legal document" on amending, supplementing or abolishing these regulations.

Previously, many opinions from real estate businesses said that Circular No. 06/2023/TT-NHNN had created some "tighter" lending regulations, especially in the real estate sector, making access to capital difficult. In particular, two prominent shortcomings in Circular 06 were pointed out: increasing the number of cases where loans are not allowed and unclear loan conditions. This will continue to cause congestion, affecting the supply and ability of people to buy houses.

Ngoc Vy

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