The State Bank of Vietnam (SBV) several months ago enacted a legal requirement to make it easier for real estate companies to get bank loans, but the legal effort has not worked out as intended.
The decree issued by the SBV on June 28 and expected to take effect on Sept 1, is a revised version of earlier regulations covering the lending activities of credit institutions and branches of foreign banks.
The Vietnam Association of Realtors (VAR) is calling for the repeal of the latest decree because it fails to capture the spirit regulations centred around measures to promote the development of a sound real estate market.
According the VAR the decree does not clearly define the scope of its beneficiaries and the ambiguity has led to a situation where who gets loans is left to the discretion of banks themselves.
The VAR said many banks could exploit that to refuse loans to companies in distress, rendering the decree ineffective.
Source: The Star