A road map is needed for the adjustment of Circular No 36 because the real estate market has just recovered and shows no signs of a “bubble”, said Vũ Quang Phấn, deputy director of the house and real estate management department under the Ministry of Construction.
Property experts and enterprises gathered in a workshop to discuss the amendment draft of Circular No 36 early this week.
In a draft document from the central bank that had been circulated for public opinion, the risk ratio of receivable lending for real estate and securities would be raised from 150 per cent as stipulated in Circular No 36 to 250 per cent.
The maximum ratio of short-term funds used for medium- and long- term loans would be reduced from 60 per cent to 40 per cent.
The amendment of Circular No 36 aims to stabilise the property market and prevent and control risks of credit institutions’ lending activities.
Sudden changes would affect the real estate market by tightening loan sources and conditions, Phấn added.
Agreeing with the opinion, Bùi Quang Tín from the Banking University of HCM City, said that sudden changes would influence both banks and enterprises.
According to statistics from the State Bank of Việt Nam (SBV), the use of short-term capital for medium- and long-term loans of joint stock commercial banks was 33.36 per cent and 36.9 per cent, respectively, as of December 31 last year.
SBV also reported that the rate rapidly increased in the first months of this year to nearly 40 per cent at many commercial banks.
Therefore, if the rate was reduced to 40 per cent from 60 per cent as stated in the draft, it was clear that banks would not lend more, Tín said.
If policies are continuously changed, one of the most concerning problems will be the impact on business plans of banks and enterprises, he said, adding that a stronger amendment would affect the stable development of the property market in the future.
Đinh Duy Trinh, director general of the Bản Việt Land Corporation, told the Thời báo Kinh tế Việt Nam (Việt Nam Economic Times), that the amendment draft was stirring up concerns on property credit tightening, while most of the capital sources for property were funds borrowed from banks and money mobilised from customers.
If the decision to limit the capital supply for the property market and change the risk ratio from 150 per cent to 250 per cent goes into effect, many projects will be paralysed, which would be a hard hit to a property market that had just recovered, Trinh said.
However, Đinh Thế Hiển, an economic expert, said that the tightening of lending sources would help enterprises balance their supply with real demand.
The amendment would be able to screen participants, as weak property enterprises would be eliminated, he added.
“Home buyers can find higher quality homes from investors that have good financial potential and governance experience”, Hiển told cafef.vn.