A credit package of VND1 trillion will be disbursed in 2018 (illustrative image)

Deputy General Director of the Vietnam Bank for Social Policies (VBSP), Nguyen Van Ly, said that the social housing assistance programme will be extended and a credit package of VND1 trillion will be disbursed in 2018. Of which, VND500 billion (US$22 million) will be funded by the State and VND500 billion will be funded by the VBSP.

According to the approved plan, the Government will allocate VND1.16 trillion (US$51.04 million) to the VBSP by 2020 and the bank is required to mobilise a corresponding amount. Therefore, by 2020, the VBSP will have nearly VND2.3 trillion (US$102.2 million) of preferential loans under the housing support programme, Ly said.

In 2018 alone, the VBSP will allocate VND50 billion out of the VND1 trillion package to both Hanoi and Ho Chi Minh City; VND10 billion to Hai Phong; VND29 billion to Bac Giang; VND19 billion to Lai Chau; and VND30 billion to Thanh Hoa; among others.

Earlier on April 3, 2018, the Prime Minister signed Decision No.370 on the interest rates for affordable housing purchases applied in 2018 at the VBSP. Accordingly, a preferential rate of 4.8% per year will be offered to social home buyers and the overdue debt interest rate is projected to stand at 130% of the lending interest rate.

Beneficiaries of the credit package include revolutionary contributors, low-income workers, needy and near-poor households, and State employees.