Prime Minister Pham Minh Chinh has just signed urgent dispatch No. 746/TTg-KTTH dated August 16, 2023, assigning Deputy Prime Minister Le Minh Khai to immediately chair a meeting with the State Bank and relevant agencies to study and amend Circular 06/2023/TT-NHNN, improving businesses' access to credit.

To continue to resolutely, promptly and effectively implement solutions to improve businesses' access to credit, the Prime Minister requested to have an open-minded spirit, listen to the opinions of businesses and people, ensure that policies when issued are correct, accurate, do not hinder development and are appropriate, and promptly handle problems.

Deputy Prime Minister Le Minh Khai was assigned to urgently chair a meeting with the Governor of the State Bank of Vietnam, leaders of the State Bank of Vietnam, the Ministry of Justice, the Ministry of Finance, and the Government Office to listen to reports and study instructions on amending and supplementing Circular No. 06 and unreasonable points of Circular No. 03/2023/TT-NHNN, and report to the Prime Minister before August 20.

Previously, on August 15, Mr. Le Hoang Chau, Chairman of the Ho Chi Minh City Real Estate Association (HoREA) sent good news to the HoREA Executive Board, members and the business community: Governor of the State Bank Nguyen Thi Hong informed the association's leaders that investors can still borrow even for projects that are not qualified for business and projects that are qualified for business.

Currently, many real estate businesses reflect that Circular 06 has many points that are barriers, making it difficult for them to access capital and reducing credit growth, which was already low in the first half of 2023.

In a previous survey by VTC News, many real estate businesses considered Circular 06 as a blow that made the real estate market even more miserable. In this circular, the number of cases where credit institutions are not allowed to lend increased from 6 to 10, this regulation makes it difficult for real estate businesses and home buyers to borrow capital.

Responding to VTC News about Circular 06 of the State Bank, Mr. Pham Duc Toan, General Director of EZ Real Estate Investment and Development Joint Stock Company (EZ Property) commented that in the context of the real estate market still facing difficulties, liquidity and cash flow decreasing, Circular 06 causes many difficulties. The increase in cases of not being able to access credit capital will certainly have a negative impact because capital from banks is always the main resource for home buyers, investors, and project developers.

Immediately after Circular 06 was issued, real estate businesses expressed confusion over many regulations. Experts pointed out that PPP projects, infrastructure works... require large amounts of capital while the capital recovery revenue is long-term, so mobilizing legal capital sources to implement the project is inevitable. However, Circular 06 completely blocks this capital flow by not allowing the investor's partners (third parties) to borrow capital through business cooperation, only lending when meeting business conditions. During the period when capital is needed most, when implementing construction, they are limited in their mobilized sources.

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