Preparing content for the national online conference to remove obstacles and promote the healthy and sustainable development of the real estate market this morning, February 17, chaired by Prime Minister Pham Minh Chinh, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) Mr. Le Hoang Chau raised many practical issues and made important recommendations.
Specifically, Mr. Chau proposed that the Government consider allowing the State Bank to issue a new Circular similar to Circular 14/2021/TT-NHNN "relaxing criteria" but not "lowering credit standards" so that real estate businesses can restructure their credit loans due within 12-24 months, keep the debt group the same, and "write off bad debts" for some "group 2, group 3" debts to be able to borrow new credit capital for real estate projects with full legal status, secured assets, feasibility, and assessed by credit institutions to have the ability to pay interest and repay principal.
Most importantly, according to Mr. Chau, the State Bank needs to consider extending the "roadmap" that stipulates that credit institutions can only use a maximum of 34% of short-term mobilized capital and savings for medium and long-term lending until December 31, 2024, and to 30% from January 1, 2025 to have more capital for lending.
Real estate market needs urgent support from State Bank policy
In particular, credit institutions are not prohibited from purchasing corporate bonds in cases where corporate bonds are issued for the purpose of restructuring the debts of the issuing enterprise itself, in accordance with Decree No. 65/2022/ND-CP.
HoREA welcomes and recommends that the Government and the Prime Minister consider and soon approve the proposal of the Ministry of Construction on a preferential credit package of VND 110,000 billion to refinance commercial banks designated by the State Bank to provide preferential loans to buyers, renters of social housing, housing for industrial park workers and investors of social housing projects to achieve the goal of developing 1 million social housing apartments in the period of 2021-2030.
Regarding bonds, Mr. Chau proposed that the Government urgently issue a Decree amending and supplementing a number of articles of Decree 65/2022/ND-CP on corporate bonds.
In which, the Government is recommended to allow the extension of regulations on determining the status of professional securities investors as individuals; on credit rating results for enterprises issuing bonds to July 1, 2024 or January 1, 2025 instead of January 1, 2024 because it is not really suitable for the actual situation, because there are only more than 10 months left.
In particular, Mr. Chau requested the Government Working Group headed by Deputy Prime Minister Le Minh Khai and the Prime Minister's Working Group headed by Minister of Construction Nguyen Thanh Nghi to coordinate with ministries, branches and localities to urgently consider and resolve projects originating from "public land", "land from equitization of state-owned enterprises" or projects subject to legal review, inspection, examination and audit.
In particular, it is requested that the Provincial People's Committee urgently consider removing obstacles and difficulties for real estate, housing and urban projects in the area as discussed in the previous meeting.
According to Mr. Le Hoang Chau, the two biggest difficulties of the real estate market today are "Legal problems" accounting for 70% of the difficulties of real estate businesses, the rest are difficulties in capital sources, first of all bank credit capital, then corporate bond capital, capital from the stock market and capital mobilized from customers.
Resolving legal problems requires time because of the Law, while credit capital is the "midwife" of real estate enterprises, especially after enterprises have spent a large amount of capital to create project land funds, so they need to borrow credit capital to invest in construction works until they are eligible to mobilize capital to sell future housing. At the same time, credit capital is also the "midwife" for home buyers and home buyers create cash flow, creating liquidity for real estate enterprises, so supporting credit for home buyers is supporting the recovery of the real estate market.
Source: https://nld.com.vn/kinh-te/hiep-hoi-bat-dong-san-tp-hcm-gui-tam-thu-den-hoi-nghi-do-thu-tuong-chu-tri-20230217085103952.htm
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