Mortgage refinancing by special bonds for some banks

The Bank will be refinancing loan money plain VAMC's special bond with the duration of 6 months with the interest rate from refinance home mortgage around 4.5% per year.

The State Bank has just decided to refinance mortgage for some commercial banks by special bonds of property management company of the credit institutions in Vietnam (VAMC) to support active capital for credit institutions in the process of handling bad debt.

A number of commercial banks will be refinancing loan money plain VAMC's special bond with the duration of 6 months, the interest rate at about 4.5% annually, discounted by 50% of the face value of the bonds. This means that if the mortgage bank by 1,000 billion face value of bonds in particular are borrowed 500 billion.

Currently VAMC received quite a lot of refinancing mortgage loans suggested by special bonds of banks based in Hanoi and the South. According to Hung-VAMC President said they would be willing to meet legitimate proposal of the credit organization.

Hung also said more banks will be refinancing loans by special bonds differently depending on home mortgage refinance the condition of individual banks, based on monetary policy, the balance money supply and can attached the condition that Bank must collect about how.

Earlier in the circular 20/2013, the State Bank has stipulated, refinancing rates for credit institutions will be based on the basis of special bonds face value due to State Bank Governor decided based on the goal of monetary policy, the operating results of extract formed reserve mortgage information risks for special bonds and bad debt processing results but not exceeding 70% in comparison with the denomination of special bonds.

Refinancing mortgage interest rate for credit institutions by the Prime Minister to decide in each period. Refinancing interest overdue by 150% refinancing interest rate credited on credit contracts between State Bank and credit institutions. The term refinance under 12 months but not exceeding the remainder of the term of special bonds.

Although the State Bank allowed commercial banks are refinancing loan from the VAMC's special bond from long, however to date needs refinancing mortgage by the new VAMC bonds arises.

According to the World Bank by this point, some banks lack liquidity locally plus the speed of credit flows to the market rise sharply should make new commercial banks arise needs refinancing  a mortgage with bonds VAMC.

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