42 banks to provide guarantees for home purchases

Monday, Nov 27, 2017 11:07

Vietcombank is eligible to provide guarantees for future home purchases. — Photo Vietcombank

The State Bank of Viet Nam (SBV) has released a list of 42 commercial banks, which are eligible to provide guarantees for future home purchases, according to Circular 13/2017.

The list includes domestic large-sized joint stock commercial banks such as Agribank, Vietcombank, Vietinbank and ABBank, as well as ACB and LienVietPostBank.

One-member limited liability banks such as ANZ Vietnam, Hong Leong Vietnam, HSBC Vietnam and Shinhan Vietnam, as well as Standard Chartered Vietnam, Woori Vietnam, CIMB Vietnam and UOB Viet Nam, in addition to Public Vietnam, Indovina and Vietnam - Russia Joint Venture Bank are also in the list.

Last month, the SBV issued Circular No 13/2017, which has taken effect since November 15, to amend Circular No 07/2015 on bank guarantees.

Under the new circular, commercial banks must issue guarantees for buyers of future property within 10 days from the date the real estate purchase contract is signed.

The guarantee means that banks would implement financial obligations to the buyers on behalf of the housing developers, in case they fail to hand over the property before the committed deadline without adequately refunding the advance.

The maximum guaranteed amount would be equal to the amount the developers are allowed to receive in advance from the buyers.

Banks eligible to provide a guarantee for home purchases must meet two requirements. Firstly, their establishment and operation licenses should have regulations on guarantees and secondly, banks should not be banned from providing guarantees in the period of being under special control. — VNS

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