The Netherlands Development Finance Company (FMO) signed a deal with the Saigon Commercial Bank on July 4 to lend the bank US$9 million to support its housing loan program.
With FMO’s backing, the bank, whose trading name is Sacombank, will offer people long-term loans to build houses, said Sacombank general director Phan Bich Van. They will have 10 or 15 years to pay off the loans.
Ms Van said many Vietnamese cannot afford to buy a house, especially in big cities, and her bank’s housing loan program was designed to help them out.
Dutch Development Cooperation Minister Agnes van Ardenne, who is visiting Viet Nam from July 3 to 6 to boost the two countries’ cooperation, attended the signing ceremony at the Sacombank headquarters in Ho Chi Minh City.
FMO’s USD 9 million investment in Sacombank comes from its Capital Development Fund, making it possible to extend a local currency loan.
FMO is among the world’s leading international lenders, while Sacombank is a major non-State commercial bank in Viet Nam.
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