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Friday, August 19, 2022

PM urges prudence over real estate lending cuts

By Van Phong

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HCMC – Prime Minister Pham Minh Chinh has said macroeconomic stability and inflation control are what the Government is aiming for while the real estate market plays a role in achieving these goals, so property loan tightening should be done carefully.

He stressed the important role of the real estate market in stabilizing the macroeconomy, bringing inflation under control and fueling economic growth.

Speaking at a property market conference in Hanoi on July 14, Chinh said problems with the real estate market must be tackled, but in a way that ensures stable and sustainable growth of the market.

He noted violations in economic and civil relations should not be treated as criminal offenses, but measures should be taken to monitor, detect and resolve problems in line with the law and protect individuals who comply with the law, and harmonize the interests of the State, businesses and residents.

According to him, it is essential to develop the real estate market in line with the market rules, while the State needs to adopt preventive measures against market manipulation and price gouging.

He asked the Ministry of Construction to review and revise the legal system governing the real estate sector.

The State Bank of Vietnam should continue monitoring and restructuring credit for the real estate sector to ensure the proper use of capital and prevent market risks, he said.

The Ministry of Finance was told to coordinate with the relevant ministries and agencies to complete a draft document and submit it to the Government to amend Decree No.153/2020 on corporate bond issues and trading.

PM Chinh ordered the Ministry of Natural Resources and Environment to team up with the ministries of Finance and Justice to review and amend the prevailing regulations on auctions of land use rights.

In recent years, real estate companies have relied on corporate bond issues as a key channel to raise funds as commercial banks have tightened credit for the sector.

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