The State Bank has never said “tighten”, “tighten”, “stop” real estate credit

Information at the Workshop “Opening up capital for the real estate market” taking place on the morning of June 7 in Ho Chi Minh City, Deputy Governor of the State Bank – Mr. Dao Minh Tu confirmed, this agency has not had any documents or statements yet. who directs the work? credit squeezeblocking credit or blocking the development of real estate businesses.

The policy of the State Bank for real estate credit here is to control and ensure risks, to prevent credit institutions from becoming weak and unsafe credit institutions. The banking industry must ensure the safety of the commercial banking system and credit institutions because once it fails, the consequences are enormous. As long as credit institutions are assessed as weak, the national financial safety index and coefficient will be underestimated internationally, immediately affecting the story of international reputation or investment capital flows. invest in Vietnam.

Therefore, in order to appear weak credit institutions, state management agencies must control credit when investing in high-risk areas. For example, the State Bank of Vietnam manages the risks of credit institutions when lending to the real estate sector, such as with projects with large segments, of great value due to large accumulation of money, illiquidity or non-payment by enterprises. was left with a pile of bad debts. Do not stop, these projects are at risk of market manipulation, speculation, price blowing… creating a hot real estate phenomenon.

It is also not possible for the profit target of enterprises because it will affect not only the macro economy but also the social security of the poor. When people want to have a house but the price is pushed up by 5-7 billion dong, they can’t buy a house for a lifetime.

According to a representative of the State Bank, in just one morning, from cadres to people sitting at coffee, everyone discussed buying houses here and there. Is this to buy to live or to speculate and do business? Due to price inflation, there are villas up to hundreds of billion dong, or several hundred billion dong/house in Ho Chi Minh City. Therefore, this is an area that needs to be controlled. Priority must be given to credit for social housing, worker housing, housing for the poor, low-income people or rebuilding old apartments…

Meanwhile, for businesses with capacity, finance, experience in managing and organizing project construction, effectively, they are not subject to credit restriction. The State Bank still encourages commercial banks to be interested and bold in lending to such projects, without the policy of “tightening”, “tightening” credit in this field.

However, the decision-making power rests with commercial banks, but the State Bank does not interfere in the lending or non-lending decisions of banks. The lending is based on project appraisal and capital needs of enterprises, the bank will evaluate the capacity of units, effective projects, recover debts, and have no risks, then decide to grant loans. get a loan. Understandably, commercial banks are also businesses, mobilizing people’s money and are responsible for paying depositors. When lending money, the debt must be recovered.

Real estate bubble burst, 10 years Vietnam has not finished dealing with debt

Deputy Governor Dao Minh Tu cited, Vietnam itself from 2009-2012 has tasted the lesson of the real estate bubble. When the bubble collapsed, only bad debts remained, leaving no small consequences. 10 years later, bad debt has not been resolved. This affects 100 million people, the national financial system, affects the development process when bad debt is like a blood clot.

In fact, there are 2,288,278 billion dong currently lending to the real estate sector. In which, loans for real estate business by project segment are about more than 750,000 billion, and more than 1.5 million billion are loans for social housing, commercial housing … Real estate credit growth rate still reaches 10 19%, so it is impossible to say there is any “tightening” move here.

Recently, there has been a story of “tightening” credit, some banks are strict in lending, partly from the problem of real estate businesses. In particular, some cases have lost investor confidence.

According to data reported to the National Assembly, 94% of loans in the real estate sector are currently medium and long-term loans of 10 years or more, while deposits are short-term. Thus, the risk will occur if only focusing on lending too large amount to one enterprise or the population of one enterprise.

Tran Chung

Ministry of Finance: There is no mechanism to control cash flow for real estate salesThe Ministry of Finance talked about measures to prevent tax loss, especially in business activities and real estate transfer.