The Prime Minister directed to amend Circular 06.

Prime Minister Pham Minh Chinh has just signed urgent dispatch No. 746/TTg-KTTH dated August 16, 2023. Accordingly, in order to continue to resolutely, promptly and effectively implement solutions to improve businesses' access to credit, the Prime Minister requested that with a spirit of openness, listening to the opinions of businesses and people, ensuring that policies when issued must be correct, accurate, not hindering development and appropriate, and promptly handling difficulties.

Deputy Prime Minister Le Minh Khai urgently chaired a meeting with the Governor of the State Bank of Vietnam, leaders of the State Bank of Vietnam, the Ministry of Justice, the Ministry of Finance, and the Government Office to listen to reports and study instructions on amending and supplementing Circular No. 06/2023/TT-NHNN dated June 28, 2023 and unreasonable points of Circular No. 03/2023/TT-NHNN dated April 17, 2023.

The Prime Minister requested to report back to the Prime Minister before August 20, 2023.

On August 15, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA), just informed the HoREA Executive Board, members and the business community of the "good news" that the Governor of the State Bank of Vietnam (SBV) Nguyen Thi Hong sent information to the association's leaders with the content that investors are still allowed to borrow, including projects that are not yet qualified for business and projects that are qualified for business.

Circular 06 is receiving a lot of attention from real estate businesses. Businesses are reacting because Circular 06 has many points that are considered barriers, making it difficult for real estate businesses to access capital and reducing credit growth, which is already low in the first half of 2023.

In an official dispatch to the Prime Minister, the State Bank of Vietnam requested to review and amend Circular 06/2023/TTNHNN, Circular 03/2023/TT-NHNN and Circular 08/2020/TT-NHNN in July 2023, HoREA pointed out many shortcomings. Accordingly, Clause 2, Article 1 of Circular 06/2023/TT-NHNN is not suitable for reality, does not ensure consistency and consistency with legal regulations.

HoREA believes that if the project “is qualified to be put into business”, the investor “would not be foolish” to borrow bank credit at high interest rates, because at this time, the investor is allowed to “buy, sell, and lease real estate in the future”, and can mobilize capital from customers, which is the “cheapest and most effective” source of capital because there is no pressure to pay interest or principal, but only needs to complete the project early to hand over the house to the customer .

Thu Huong

Source