HCMC - The disbursement of the VND120-trillion credit package for social housing has been far slower than expected, with just a few applicants since its rollout over three months ago.

Data from the State Bank of Vietnam (SBV) showed that only VND95 billion from the VND120-trillion aid package has been disbursed since its official launch. Commercial banks have committed to lending VND950 billion to several investors of social housing projects. Up until now, 26 projects in nine provinces have applied for loans totaling VND12.8 trillion, reported the local authorities. The VND120-trillion credit package was introduced in April this year, following the Government's Resolution 33, to encourage investors to develop social housing projects and support workers in purchasing a home. According to the plan, four major State-run commercial banks, namely Vietcombank, Agribank, BIDV and VietinBank, will allocate around VND30 trillion for individuals and businesses in need. The loans under the package are offered at interest rates that are 1.5-2 percentage points lower than the market rates for medium and long-term loans. The SBV will continue to instruct commercial banks to expedite the loan disbursement and prioritize providing loans for social housing projects, renovation, and reconstruction of apartment buildings to meet the housing demands.