HOREA CONTINUES TO RECOMMEND THE STATE BANK TO MODIFY LENDING REGULATIONS

The Ho Chi Minh City Real Estate Association is concerned that the new regulations in Circular 06 will limit credit loans when investors have the highest capital needs.

Circular 06 will take effect on September 1. The State Bank has explained in advance the concerns of real estate businesses about credit limits. However, in a recent document sent to the Prime Minister and the State Bank of Vietnam, the Ho Chi Minh City Real Estate Association (HoREA) said that this explanation is not satisfactory and is not close to reality, there is a "difference" compared to other regulations. other law.

Circular 06 stipulates that banks do not provide loans to pay for capital contributions to the implementation of investment projects that, at the time of decision-making, are not eligible to be put into business. However, HoREA said that the regulation "investment projects are not eligible to put into business" is not consistent with the Law on Real Estate Business 2014 on "conditions of real estate formed in the future to be put into business". business". This regulation has "blocked the way" for credit loans for real estate projects, commercial houses, and urban areas right at the time when the investor has the highest need for additional credit capital to build the project.

Because at this time, the investor has spent a huge amount of money to receive the transfer of land use rights and the project has been approved for investment policy and construction permit. Investors need additional loans to build works. Projects that have had sufficient legal status but are not yet qualified to be put into business, so they are not yet allowed to mobilize capital from customers according to the Law on Real Estate Business 2014.

"If the project is eligible to put into the business, the investor is not foolish to borrow bank credit with the high-interest rate because it can mobilize capital cheaply and effectively from customers," said Mr. Le Hoang Chau, HoREA President said.

HoREA also believes that the lending ban in the new circular also hurts development investment in general because it applies to all projects, including investment projects under the method of public-private partnership (PPP). such as infrastructure works, roads, and bridges, ports, airports, power plants, hospitals, schools, agriculture, forestry, and fishery.

Because when PPP projects are eligible to be put into the business when the project is completed, the investor will have a source of revenue and no longer need to raise capital. Therefore, after an enterprise is recognized as a new investor, there is a need to raise capital to finance previous investments, or a need to find a "third party" to invite capital contribution, investment cooperation, and business cooperation to implement the project.

HoREA believes that Circular 06 prohibits credit institutions from giving loans to "third parties", leading to the result that investors must have enough capital, be able to borrow capital to implement projects or find a " third party" has sufficient capacity, can mobilize capital from abroad to be able to participate in capital contribution, investment cooperation, business cooperation in project development.

With the above regulation, the ability of domestic enterprises to meet is not much, but it creates favorable conditions for foreign investors due to the advantage of "cheap capital". Therefore, the regulation has not created the best support conditions for domestic businesses in the "home field".

In addition, Circular 06 has not created conditions for real estate project investors to cooperate with investors. Because the clause does not allow investors to borrow to pay for capital contributions during the projects implementation phase but is not yet eligible to put into business despite having full legal status. Meanwhile, this is also the time when investors need to cooperate with secondary investors to supplement capital, enjoy profits, and share risks.

Therefore, HoREA proposes the State Bank consider amending Circular 06 in the direction of removing the regulation that credit institutions are not allowed to lend to cases where the project has full legal status or the project uses land that has already been used. has a decision approving the investment policy or has been granted a construction permit. In addition, the time limit for expenses incurred when implementing the project should be less than 36 months, by the time the credit institution decides to lend, instead of less than 12 months to be close to the actual implementation of the projects. real estate, commercial housing.