On March 26, HoREA sent a document to Prime Minister Pham Minh Chinh to propose some solutions for credit and project transfers to remove difficulties in the real estate market.

According to HoREA, Decree No.08/2023/ND-CP has had a positive impact on the confidence of the market and its investors. This is the legal basis to pave the way for a negotiated agreement between the companies that have issued upcoming bonds and the bondholders.

The decree, dated March 5, focuses on amending, supplementing, and ceasing the effect of a number of articles in previous decrees on the private placement of corporate bonds and the trading of privately placed corporate bonds on the domestic market, along with the offering of corporate bonds on the international market.

However, this decree only stipulates the negotiation mechanism between the enterprise that has issued the upcoming bond and the bondholder, especially the bond swap mechanism for the payment of principal and interest bonds to maturity with other assets.

Therefore, HoREA said that the government needs to add some solutions for credit and project transfers.

Specifically, HoREA proposed that the State Bank of Vietnam allow commercial banks to permit businesses to issue bonds that are about to come due to enable those who have collateral and projects approved by competent state agencies to borrow to restructure the bond debt.

The loan that can be considered should not exceed 70 per cent of the issued bond package value, but HoREA wants commercial banks to be allowed to mortgage with this bond package and other security assets.

The issuance would be through commercial banks disbursing directly to bondholders.

In addition to the above proposal, this association also asked the State Bank to reduce lending interest rates and create conditions, especially for real estate units and home buyers, to have more favourable access to credit.

It also suggested the State Bank guide commercial banks to allow businesses to extend the repayment schedule according to the guidelines of Resolution No.33/NQ-CP dated March 11 from the government on specific solutions to resolve difficulties and develop the real estate market.

At the same time, HoREA outlined allowing real estate businesses to agree to transfer real estate projects according to their needs.