Ministries, SBV requested to boost corporate bond, real estate markets

Bich Phuong Wednesday | 11/29/2023 18:00

Photo by VNA.

In order to support corporate bond and real estate markets in a safe, healthy, and sustainable manner, Prime Minister Pham Minh Chinh has called for further measures to encourage credit availability.

In a dispatch sent to relevant ministers, the central bank governor, and local leaders on November 23, the PM emphasizes that, despite joint efforts, the corporate bond and real estate markets have yet to improve as expected, with low credit growth, difficulties in capital absorption, and rising bad debts.

Given this, he requests that the Ministry of Finance coordinate with relevant agencies to continue implementing fiscal policy in a suitable, focused, and effective manner, and to combine it with monetary policy to encourage investment, particularly non-state capital flow.

The ministry needs to quickly review and thoroughly evaluate the payment capacity of corporate bond issuers, especially bonds due for payment in late 2023 and 2024. It must also assess the implementation of Decree No. 08/2023/ND-CP, dated March 5, 2023, and other documents governing the trading of corporate bonds in the domestic market and the offering of corporate bonds in the international market.

The PM requests that the ministry collaborate with the Ministry of Justice, the Ministry of Planning and Investment, the State Bank of Vietnam (SBV), and other agencies to review legal documents pertaining to the issuance of corporate bonds and propose specific plans for legal adjustments and supplements, which should be completed by early December.

Meanwhile, the SBV is urged to keep a close eye on market developments in order to operate monetary policy and control credit growth, he said, adding that production and business, as well as growth engines such as investment, consumption, export, digital transformation, and green transition, should be prioritized.

The bank should find ways to effectively implement the 120 trillion VND (4.9 billion USD) package of preferential lending rates for social housing development and purchase, as well as move forward with the 15 trillion VND package in the forestry and fishery sectors.

The outcomes of the implementation of the social housing package must be reported to the PM within this month, according to the dispatch.

The leader also requests that the bank facilitate credit access for businesses and individuals, streamline administrative procedures further, and strictly deal with commercial banks that seek to obstruct credit access for real estate firms and buyers.

The Ministry of Construction has been tasked with coordinating with National Assembly agencies and others to review and perfect the draft Housing Law (amended) and the revised draft Law on Real Estate Business, which are expected to be adopted at the 15th legislature's sixth sitting.

The Ministry of Natural Resources and Environment will advise municipalities on how to remove barriers to land allocation and leasing, particularly in land pricing, management, and use.

The People's Committees of centrally-run cities and provinces are asked to expedite the construction and approval of planning schemes that serve as the foundation for the rollout of real estate projects, as well as publicize the list of real estate projects that require bidding to select investors.

Source: Nhân Dân

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