Over the past period, state agencies, ministries, boards, and sectors have proactively and actively implemented the government's directives and management regarding strengthening access to credit, promoting effective and sustainable development in the corporate bond market (CBM) and real estate sector (RES). As a result, there have been improvements and positive changes in the CBM and RES markets, although not meeting expectations. Credit growth remains low, and the economy's ability to absorb capital continues to face challenges, with non-performing loans showing an increasing trend.
To continue effectively and timely implementing solutions to enhance access to credit and promote the efficient, safe, healthy, and sustainable development of the CBM and RES markets, on November 23, 2023, the Prime Minister issued Directive 1177/CD-TTg on the continued resolute implementation of the mentioned solutions ("Directive 1177"). Below, ATA Legal Services has updated some noteworthy contents as follows:
1. Strengthening risk prevention review for the payment capacity of Bond Issuers
- Review and evaluate the payment capacity and disbursement of bond issuers, especially bonds maturing by the end of 2023 and 2024, and develop scenarios for handling;
- Accurately assess the payment capacity and plans of business issuers, especially those facing difficulties, prioritize businesses to fulfill their obligations as per regulations, ensuring the legitimate rights and interests of investors;
Implementation lead: Ministry of Finance.
2. Creating conditions for businesses and individuals to access credit
- Directing credit to priority sectors and economic growth drivers: investment, consumption, export, digital transformation, green transformation, etc.;
- Continuing to vigorously implement the credit program of 120 trillion VND for developers and homebuyers in social housing projects, worker housing, projects for renovation, and reconstruction of old apartments; continue to promote the implementation of the preferential credit package of 15 trillion VND for the forestry and aquatic sectors;
- Reducing inappropriate administrative procedures that incur costs, increase expenses for individuals and businesses, and simplifying procedures and conditions for borrowing.
- Review to timely detect and strictly handle commercial banks imposing additional, infeasible, or non-compliant conditions, causing difficulties for accessing credit for businesses, real estate projects, and homebuyers.
Implementation lead: State Bank of Vietnam.
3. Minimizing procedures and processing time for real estate projects
- Minimize processing time, expedite the resolution of procedures related to real estate projects, with a priority on expediting the progress of industrial real estate projects, social housing, and housing for workers.
- Expedite the establishment and approval of plans, especially construction plans, urban and rural planning.
- Promote decentralization, empowerment, and timely guidance to localities to resolve arising difficulties in management.
Implementation lead: Ministry of Construction and Provincial People's Committees.
Directive 1177 is effective immediately upon issuance, and it is expected to bring vitality to the CBM and RES markets in the last month of 2023 and the beginning of 2024.
Comment: