At yesterday' meeting, BIDV officials announced that the bank reserved $476 million to support house trading. ― Photo cafeland.vn

HA NOI (Biz Hub) ― The Bank for Investment and Development of Viet Nam (BIDV) yesterday announced it had reserved roughly VND10 trillion (US$476.2 million) to lend home builders and buyers as part of the Government's property market support package.

The government package, worth VND30 trillion ($1.4 billion), is intended to stimulate the ailing property market by boosting credit flows.

The bank planned to finance borrowers with up to 60 per cent of a house's total value in the first three years and would reduce this ratio to about 30 per cent from the fourth year.

It would support social house developers within five years with finances amounting to 80 per cent of the house's value. This ratio would also apply for individuals who buy social or commercial houses with areas smaller than 70sq.m and prices less than VND15 million ($714) per sq.m, within 15 years.

BIDV added that it would grant credits to borrowers within 20 working days for businesses and four working days for individuals who met lending conditions.

The bank said it had pledged finance of VND231 billion ($11 million) for three social housing investment projects. Over VND100 billion ($4.8 million) had been disbursed for these projects.

It was also assessing projects in HCM City, where authorities were considering converting four commercial developments into social houses with a total of 3,300 apartments, according to the bank. ― VNS