The association recommends the State Bank to amend and supplement a number of provisions of Circular 06 and Circular 03 to create conditions for businesses and investors to get more favorable credit loans.
According to the Ho Chi Minh City Real Estate Association (HoREA), Resolution 97 (July 8, 2023) of the Government, which assigned the State Bank to assume the prime responsibility for, and implement solutions to manage monetary policy proactive, flexible, appropriate easing, focused, effective and quick to prioritize removing difficulties for production and business, promoting growth in association with macroeconomic stability, controlling inflation , ensuring the great balances of the economy…
The Association found that Circular No. 06 (June 28, 2023 – Circular 06) of the State Bank (amending and supplementing Circular No. 39, dated December 30, 2016) contains a number of unsolicited regulations. consistent with the legal provisions and not suitable with the practice of investment, construction, production and business activities of the business community in general, including real estate businesses and businesses operating in the form of public-private partnership (PPP) in particular.
Therefore, the Association recommends the State Bank to urgently consider amending a number of provisions of Circular 06 in the direction of removing a number of additional regulations.
Specifically, it is proposed to consider amending Clause 2, Article 1 of Circular 06, the Association proposes to remove the regulation that credit institutions are not allowed to lend for capital needs “to pay for capital contribution, purchase, receive transfer capital contribution of limited liability companies and partnerships” (clause 8 Article 8 of Circular No. 39).
Because according to the Law on Credit Institutions, investors who have “need to borrow capital for lawful purposes” can access and use credit sources in accordance with the law.
In addition, Article 5 of the Investment Law 2020 stipulates that investors are entitled to access and use credit sources, support funds, and use land and other resources in accordance with law.
HoREA believes that investors borrow credit and investors use this loan to “contribute capital, buy, receive and transfer capital contributions of limited liability companies and partnerships” are two separate activities. The problem that needs to be raised is to implement a solution to control risks, not because of this concern, to ban or not lend credit.
According to the above provisions, assets contributed as capital to form the charter capital of “limited liability companies and partnerships”, including the source of “money for capital contribution, purchase and transfer of contributed capital of the company”. limited liability company, partnership” is a loan from a credit institution, it still accurately reflects the financial capacity of the company, because the investor’s capital contribution is a credit loan as well as money. Therefore, the charter capital is also real capital and there will be no situation that “if formed from borrowed capital, it will not accurately reflect the financial capacity of the company” and this capital contribution is not “one of the method that customers can use to hide the form of mutual ownership” as concerned by the State Bank.
HoREA proposes to the State Bank to consider amending Clause 9 Article 8 of Circular No. 39 (amended and supplemented in Clause 2, Article 1 of Circular 06) in the direction of proposing regulations that credit institutions are allowed to provide loans to customers. capital needs “to pay the capital contribution under the capital contribution contract, investment cooperation contract or business cooperation contract for the implementation of a fully legal investment project or a project using land that has been having a decision approving the investment policy concurrently with the approval of the investor or having been granted a construction permit according to the provisions of law.
The Association found that Clause 9, Article 8 of Circular 39 is not consistent with Article 55 and Clause 1, Article 56 of the Law on Real Estate Business 2014.
Because “real estate projects are eligible to be put into business” according to the provisions of Article 9 of the Law on Real Estate Business 2014, applicable to the case where real estate for rent or commercial housing is available, the investor there is absolutely no need for credit loans because they have full rights to sell products to the market without restriction.
At this time, after the investor has spent a huge amount of money to receive the transfer of land use rights and the project has been approved by the competent state agency “approval of the investment policy, construction permit, etc. This is the time when the investor needs to borrow (additional) credit to invest in the construction of the project’s works and at this time, the project has enough legal status in the “real stage”. project”, but “not yet qualified to put into business”, so it is not allowed to mobilize capital from customers.
Therefore, Clause 9, Article 8 of Circular 39 has “blocked the way” to borrow credit for real estate projects, commercial houses, and urban areas right at the time when the investor needs to supplement credit capital. most used to implement the construction of the project’s works.
In addition, HoREA also proposes to amend the regulation “expenses for the implementation of this business project incurred less than 24 (or 36) months, up to the time the credit institution decides to lend” to suit. With the actual situation of the real estate market due to “legal problems” accounting for 70% of the difficulties that are not due to the fault of the business …
At the same time, consider supplementing Circular 03/2023 to allow credit institutions to consider each case of an enterprise issuing an upcoming bond that fully meets the conditions specified in Circular 02. 2023, have collateral, have a project that has been decided by a competent state agency to allocate or lease land to be borrowed to restructure upcoming debt bonds with a reviewable loan not exceed 70% of the issued bond package value; Credit institutions are allowed to accept mortgages with these bonds and have collateral under the method that credit institutions disburse directly to bondholders.
For the remaining 30% of the value of the issued bond package, the enterprise and the bondholders agree to negotiate according to the provisions of Decree 08/2023 of the Government.