SBV Deputy Governor: Do not tighten real estate credit
Answering a question with many opinions from experts that if tightening credit into the real estate sector would cause great impacts on the market at the Government’s regular press conference in May, SBV Deputy Governor Dao Minh Tu said that recently, the mass media often use words such as “tighten”, “cut” credit, real estate. However, the SBV has never had a document or statement using such words.
According to Mr. Tu, so far, the State Bank’s view has remained in the spirit of strictly controlling credit in some areas with great potential for risks such as real estate and securities. Real estate is also subject to strict control. In large-segment projects, speculative projects, even price manipulation, must be controlled very closely.
“Therefore, we still see this as the point of view as well as the guiding spirit so far and will continue to be implemented in 2022 and the following years,” said Deputy Governor Dao Minh Tu.
According to the Deputy Governor, credit in areas that create favorable conditions for the economy is encouraged, such as focusing on the segment of affordable housing, social housing, and housing for workers.
“Even in our Decree 31 and Circular 03, we instruct to spend 2% of the interest rate to implement low-cost housing projects, housing for workers, including old apartments. That proves that not all real estate sectors are strictly controlled, “said Mr. Tu.
Deputy Governor of the State Bank of Vietnam Dao Minh Tu affirmed to strictly control credit in some areas with great potential for risks, but encourage it in areas that create favorable conditions for the economy.
Mr. Tu emphasized that real estate in recent times has increased normally. By mid-April, real estate credit increased and had a loan balance of VND 2,288,000 billion, an increase of 10.19% compared to the end of 2021. This level will increase faster than the same period in 2021.
Total outstanding loans to real estate accounted for 19.16% of the total outstanding loans of the economy, outstanding loans for investment in the field that the State Bank controlled tightly accounted for 1/3 – about 785 trillion VND. Ordinary commercial banks have a loan balance of about VND 1,500,000 billion, accounting for 66-67% of total real estate credit outstanding.
“The direction of the State Bank continues to follow guidelines and policies. That doesn’t mean that all real estate sectors are being squeezed, it doesn’t mean there is a shortage of real estate supply, “said Mr. Tu.
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