Update news bailout
Greek and eurozone officials have failed to reach an agreement over Greece's debt crisis, though both sides said there was still hope for a deal.
The State Bank of Vietnam (SBV) has submitted to the government a plan on launching a VND50 trillion a credit package aiming to help revive the commercial housing market.
The government has unexpectedly proposed to the National Assembly the use of the state budget to settle bad debts incurred by SOEs, even though the legislature has said that SOEs must take responsibility for their debts.
The spokesperson of the Ministry of Construction has confirmed that the Ministry did not compile any project to support the real estate market with a VND100 trillion credit package as some newspapers reported in the last few days.
The Ministry of Construction and the State Bank both have loosened the requirements on the borrowers of the VND30 trillion package in an effort to speed up the disbursement. However, the power is in the hands of commercial banks.
VietNamNet Bridge – Government officials and experts have become impatient about the slow disbursement of the VND30 trillion bailout to be pumped into the real estate market.
VietNamNet Bridge - The Ministry of Construction has not made public the standards to define who the low income earners are, so it is difficult for banks to grant house-purchasing loans to this subject.
The bailouts, if they are launched, should target consumers in order to stimulate the demand, experts say, warning that the deflation, if it occurs, would be more dangerous than the inflation.
The consumer price index (CPI) decrease in May is the indicator showing the weak aggregate demand in the national economy which needs to be stimulated to recover the economic growth.
VietNamNet Bridge – The frozen real estate market is defrosting on the information about the disbursement of the VND30 trillion bailout, which has also revived the building material industry
The national economy remains very pale, while businesses have died like flies. Meanwhile, the government is still busy with particular calculation when mapping out the solutions to rescue businesses.
Real estate developers have sighed with relief after relevant ministries agreed to pump money into the frozen real estate market to rescue it.
Businesses have been caught into a vicious circle. Since they cannot borrow money, their production has become stagnant and they cannot pay bank debts. And since they cannot pay debts, they cannot access bank loans.