Interest rate for social housing loans continues to be proposed at 4.8%/year
According to the leader of the Vietnam Bank for Social Policies (VBSP), in 2019, the state budget allocated VND 663 billion to the VBSP, along with 50% mobilized by the VBSP itself to compensate for interest rates, the total loan capital of the program is VND 1,326 billion.
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Ms. Tran Lan Phuong, Deputy General Director of the Vietnam Bank for Social Policies (VBSP), said that in 2018, the VBSP received 500 billion VND from the state budget, along with 50% mobilized by the VBSP itself and subsidized by the Central Government for interest rates, creating a loan capital source in 2018 of 1,000 billion VND.
Immediately after receiving capital, the VBSP directed the provincial and municipal VBSP branches and district-level VBSP transaction offices to actively and urgently report to the People's Committees and representative boards of the VBSP at all levels to advise on the allocation of capital targets, and at the same time coordinate with socio-political organizations entrusted to implement the plan to all communes, wards and towns nationwide.
By December 31, 2018, 59 provinces and cities had implemented loans, and basically completed the assigned plan targets... According to Ms. Phuong, in 2019, the state budget allocated 663 billion VND to the Social Policy Bank, along with 50% mobilized by the Social Policy Bank itself to compensate for interest rates, the total loan capital of the program was 1,326 billion VND.
Regarding interest rates, according to the provisions of Point a, Clause 5, Article 16 of Decree No. 100/2015/ND-CP of the Government: "Preferential lending interest rates at the Social Policy Bank are decided by the Prime Minister upon the proposal of the Board of Directors for each period". Therefore, in 2018, the Board of Directors of the Social Policy Bank submitted to the Prime Minister for decision the preferential lending interest rate in 2019 for subjects buying, renting and purchasing social housing; building new houses or renovating and repairing houses for housing according to Decree No. 100/2015/ND-CP of the Government is 4.8%/year.
"Up to now, the Government Office is seeking opinions from a number of ministries and branches (Ministry of Finance, Planning and Investment, Ministry of Construction, State Bank of Vietnam) and the Vietnam Bank for Social Policies also hopes that as soon as possible, the Prime Minister will issue a Decision on preferential loan interest rates in 2019 for the Vietnam Bank for Social Policies to implement," said Ms. Phuong.
