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Thursday,  Dec 14,2017,15:08 (GMT+7)

Capital for real estate, BOT projects to fall

The Saigon Times Daily
Friday,  Nov 17,2017,00:24 (GMT+7)
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Capital for real estate, BOT projects to fall

The Saigon Times Daily

HCMC – The State Bank of Vietnam has demanded increased controls on loans for build-operate-transfer (BOT) road and real estate projects despite their high demand for finances, Le Minh Hung, governor of the State Bank of Vietnam, was quoted by local media as saying.

Answering National Assembly deputies’ questions on investment in property and BOT projects, Hung said banks would continue offering loans, mainly medium- and long-term loans, if projects are feasible. However, supervision is being tightened.

Loans for BOT projects have decreased, accounting for only 1.5% of total outstanding loans. Real estate loans have also gone down to 6.5% from over 10% last year.

Hung said credit had expanded 13.6% in the year to end-October, up a mere one percentage point over last year. The target for all of 2017 is 18%.

During the first ten months of the year, capital was mainly poured into small and medium enterprises in the processing and manufacturing sector.

The governor affirmed the central bank would control credit growth, ensure credit quality and curb inflation.
The average interest rate has declined over the past time. The central bank has asked credit institutions to continue reducing interest rates by cutting costs and lowering bad debt to reduce expenditures of enterprises.

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