HoREA proposes a series of solutions to "save" the real estate market

Before attending the conference on credit for the real estate sector tomorrow, February 8, the Ho Chi Minh City Real Estate Association (HoREA) has prepared to send a series of recommendations to the State Bank of Vietnam (SBV) to "rescue" the real estate market.

In particular, HoREA proposed allowing real estate businesses to restructure their credit loans due and borrow new credit capital if they have collateral with reasonable interest rates.

According to Mr. Le Hoang Chau, Chairman of HoREA, the above solutions help businesses overcome the difficult times of survival in 2023, and at the same time help home buyers get credit loans to support the real estate market to recover and develop in a safe and sustainable direction. This is also beneficial for the safe, effective and sustainable development of the entire credit system.

A real estate project is underway but facing many difficulties.

According to Mr. Chau, "legal problems" account for 70% of the difficulties of real estate enterprises. Next is the problem of "due individual corporate bonds" and credit loans, which entail the risk of turning into bad debt or "jumping" into a worse debt group in some cases.

HoREA also believes that some regulations of the State Bank or specific regulations of commercial banks need to be reviewed and amended to suit the requirements of the practical situation. Typically, the loan conditions are still too strict, such as requiring businesses to have a construction permit, like a "sub-license", making it difficult for real estate businesses; or Circular 16/2021/TT-NHNN "fights" with Decree 65/2022/ND-CP on regulations allowing businesses to issue bonds for the purpose of restructuring the debts of the issuing business itself...

HoREA recommends that the State Bank consider issuing a new circular, similar to Circular 14/2021/TT-NHNN, allowing real estate businesses to restructure credit loans due within 12-24 months, maintain the debt group and borrow new credit capital with collateral. At the same time, consider extending the roadmap for regulating credit institutions to only use a maximum of short-term mobilized capital and savings to lend medium and long term for an additional 12 months.

Source: https://nld.com.vn/kinh-te/horea-kien-nghi-hang-loat-giai-phap-cuu-thi-truong-bat-dong-san-20230207190858433.htm