Cash-strapped property firms graced by debt payment delay

By Anh Minh March 12, 2023 | 03:01 am PT

Apartment blocks and office buildings along the Hanoi Highway and Metro Line No. 1 in HCMC in February 2023. Photo by VnExpress/Quynh Tran

Financially struggling real estate companies will enjoy an extension of principal and interest payments, as well as delayed debt restructuring, thanks to a government resolution taking effect Sunday.

Also under the resolution, which aims to solve real estate problems and bolster the market, liquid property projects that meet people’s real-world housing and commercial needs will also have better access to credit.

Such projects might include social housing, the renovation of old apartments, offices for lease, and properties serving production, industry and tourism.

Fully legal real estate projects with high sales and sound debt repayment plans will also gain easier access loans. Priority will be given to social housing, workers’ housing and other types of real estate serving production, business and social security.

The Government has required commercial banks to reduce lending interest rates to support the property market.

Four state-owned banks will set aside a credit package of VND120 trillion ($5 billion) for the development of social housing and workers’ housing projects, central bank governor said.

The loan interest rates for buyers or developers of social housing projects and workers’ housing projects will be 1.5-2% lower than average bank lending rates, central bank governor Nguyen Thi Hong said at a meeting called to untangle issues in the property sector Friday.