Dinh The Hien, an Eximbank board member, said property is the most common collateral for bank loans, adding it accounts for 80 percent of outstanding loans.
“Without the government’s assistance to boost the market, banks will have to sell off or occupy properties of borrowers who fail to repay debts.
“[This] will send supply surging, depressing property prices further.”
But Kien Long Bank’s deputy general director Pham Khac Khoan said it takes banks three years to complete the procedures required to dispose of a property.
“Properties that are in demand should be sold first,” he said, to prevent prices from plunging.
