Central bank to back low-income earners in accessing loans for housing: Governor

The State Bank of Vietnam (SBV) will give flexible and suitable management to guide credit resources to business and production activities and create favourable conditions for workers and low-income earners to access capital for house purchase, Governor Nguyen Thi Hong said on August 1.

Speaking at a conference on social housing development, Hong said that the bank is working hard to help remove difficulties facing pandemic-hit people and businesses, including supporting firms investing in social housing projects to access credit sources at low interest rates.

However, Hong said that as the budget allocated to provide interest rate compensation through a decree on social housing development and management has not been arranged, and designated credit institutions have not been able to deploy the programme.

She said that the SBV has advised the Government to issue a decree to offer 2% interest rate to enterprises, cooperatives and business households when they borrow loans from commercial banks between 2022-2023, with a total support value of US$1.71 billion.

According to General Director of the Vietnam Bank for Social Policies Duong Quyet Thang, 185,741 poor people have accessed loans for housing, while 29,953 households are benefiting from flood-proof housing policies. The social housing programme has disbursed VND9.506 trillion to 25,224 households.

Thang proposed that the Ministry of Construction and localities continue to review those in need of loans for housing, giving a foundation for the bank to implement related plans.

Duong Cong Minh, Chairman of the Board of Directors of Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank), said that the bank is willing to participate in the social housing development programme, and suggested that the Government and the SBV design specific regulations and policies for the bank to engage in the scheme.

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