Banks dare not to lend and enterprises can not meet borrowing requirements because of not only the fear of unsolved bad debts in the past but also the bad debts to be formed in the future. To temporarily remove that obsession, it should have solutions to guarantee loans for businesses in three years, helping businesses that are “weak” due to lack of capital to stand up.
The State Treasury will issue VND1.5 trillion worth of 15-year government bonds on June 30 through an underwriter, the first issuance of this type of bond since 2006.
Local developers can only borrow at most VND9 trillion worth of preferential loans from the recently-effective VND30 trillion real estate bailout or 30% of the total to create supply for the market, the local newswire Gafin.vn reported.