Banking-finance

SBV announces 42 banks eligible for future property guarantee

SGGP
The State Bank of Vietnam (SBV) has just announced the list of 42 commercial banks eligible for future property guarantee comprising 31 domestic and 11 foreign banks operating in Vietnam.

A future social housing project under construction in District 2, HCMC (Photo: SGGP)

A future social housing project under construction in District 2, HCMC (Photo: SGGP)

Before announcing the list, SBV had issued Circular 13 replacing Circular 07 on bank guarantee regulations.
According to the amended circular, commercial banks must release commitments to act as guarantees for future home purchasers within 10 days since the date they have signed purchase contracts from November 15, 2017.
The banks will commit to buyers or lease purchasers to conduct financial obligations on behalf of project investors when it is time of house delivery as per contracts but investors do not hand over houses without refunding or insufficiently refunding the amount which they have received in advance before.
Afterwards, the investors must receive and refund the debts to the banks.

By YEN LAM – Translated by Hai Mien

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