Restrictions on real estate lending, which were tightened last year, have been lifted by the central bank, allowing even housing speculators to take out loans.
Nguyen Van Binh, Governor of the State Bank of Vietnam, said real estate loans were restricted last year in an attempt to control inflation.
“Now that liquidity has improved and inflation has eased, the restrictions need to be lifted gradually,” Binh told reporters at a press briefing in Hanoi Wednesday.
Home prices are now more “reasonable” and easing credit rules will help property developers clear their stock, he said, adding that more home sales will boost other sectors including cement and steel.
Binh said the restrictions have been “significantly eased” for both first-time home buyers and speculators. The central bank, however, will continue to limit lending to hotels, resorts and office building developers.
The State Bank of Vietnam on Wednesday cut its interest rates for the second time in less than a month. The refinancing rate was reduced by 1 percentage point to 13 percent, and the discount rate by the same amount to 11 percent.
The central bank also lowered the dong deposit cap for terms of one month and above to 12 percent from 13 percent.
