Jan 03, 2013 | Comments 0
Real estate developers in Vietnam are able to breathe easier after relevant ministries agreed to pump money into the country’s frozen real estate market, VietNam Net reported.
The State Bank of Vietnam has promised to slash the interest rates to make it easier for real estate developers and house buyers to access bank loans, the website reported.
Governor of the State Bank, Nguyen Van Binh, said the central bank would pump VND150 billion (US7.2 million) to settle bad debts. It will also provide loans at the interest rate around eight percent to help people buy houses.
The government stated that it would gather strength to settle bad debts, clear inventories right from the beginning of 2013.
The information about the bailout and the solutions to rescue the real estate market has come quickly. A series of meetings have been held by different ministries and organizations to discuss solutions to rescue the Vietnamese real estate market.
The website is reporting there is something unclear about where the money to rescue the real estate market will come from. The State Bank of Vietnam has not elaborated on this, but has affirmed that it can arrange the amount of money needed, according to the website.
Some experts have expressed their worry that once more money is put into circulation as planned to save the property market, the money supply increase may lead to the high inflation. If so, people would continue injecting their money in houses and land, and the so-called “real estate bubble” would take shape again.