Five more banks to guarantee property investors

Friday, Aug 28, 2015 20:55

Thirty-eight banks have been named as qualifying for guarantee property investors. -- Illustrative photo

HA NOI (Biz Hub) — The State Bank of Viet Nam named five more banks on August 27 that qualify for guaranteeing property investors, following issuance of regulations on the realty trading law.

The banks are Sacombank, Kien Long Bank, Nam A Bank, as well as Orient Commercial Bank and Vietnam International Bank.

The newly revised Law on Real Estate Business, which took effect on July 1, stipulates that property investors can sell or rent houses, which are to be built in the future, only with the underwriting of commercial banks.

The Ministry of Construction said such regulations aim to protect the interests of homebuyers, whose advanced money will be refunded if investors fail to assure the completion of their projects.

Earlier this month, the central bank listed 33 banks that offer such property guarantees. These included foreign lenders such as HSBC Vietnam, Standard Chartered, Indovina Bank, along with Vinasiam Bank and Vietnam – Russia Bank.

The central bank has also issued a circular regulating bank property underwriting, without specifying how it selects qualified lenders. — VNS

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