Capital is flowing into real estate: Suspected of having “dirty money”, money laundering needs to be controlled
– Mr. Le Hoang Chau – Chairman of Ho Chi Minh City Real Estate Association (HoREA) – has just launched a series of proposals to treat “land fever”, “house fever”.
– In particular, notably, Mr. Chau said that it is necessary to have measures to strictly control the source of “dirty money” to buy real estate to “launder money”.
– According to this position, in the first 3 months of 2021, real estate credit growth of 3%, although higher than the overall credit growth of only 2.93%, but not too unusual.
– Thus, a big question is where the huge investment capital makes the real estate market hot “bubble” now come from.
– “We found that, in addition to idle money, savings, gold stored in the population, money from taking profits from securities and money from” remittances “(about 20% of” remittances “invest in real estate) , then suggest that the State should pay attention to tightly control the source of “dirty money” (with criminal origin, or possibly due to corruption) to buy real estate to “launder money”, Mr. Le Hoang Chau suggested.
– According to HoREA leaders, the Government should soon decide on the anti-speculation tax rate to promptly handle and stabilize the real estate market when there are fluctuations.
– At the same time, when there are signs of speculation and real estate “bubble” fever, the Government should direct the State Bank to consider implementing strict control of credit in the real estate sector.
– Accordingly, considering raising the refinance rate, increasing the required reserve ratio, immediately reducing the rate of using short-term capital for medium and long-term loans to cut the fever “bubble” of real estate, on the basis of The Department consulted the Government’s experience in managing monetary and credit policy in February 2008 and February 2011. When implementing the monetary tightening policy, real estate credit tightening, raising the basic interest rate to 14% / year, leading to the lending interest rate to 21-25% / year, immediately cut the fever “bubble”. “. But the undesirable consequence is that this policy has pushed the real estate market to immediately fall into a “frozen” state.
– In 2013, Mr. Chau said that in order to break the “frozen” position of the real estate market, also with credit tools, the Government and the State Bank had a preferential credit package of VND 30,000 billion (owner The weak is consumer demand stimulus) has handled 56,180 houses of inventory, handled more than 28,000 billion dong of real estate bad debts, supported 56,180 people to buy houses and supported for the real estate market to recover. and bounce back from 2014 until now.
– From 2016 up to now, the State Bank has implemented a roadmap to gradually limit credit to high-risk areas, including real estate. Accordingly, as of October 1, 2023, commercial banks can only use up to 30% of short-term mobilized capital for medium and long-term loans.
– In the first quarter of 2021, real estate credit growth increased by 3%, higher than overall credit growth, only 2.93%, so the State Bank is closely following the market situation and can “tighten” the source. credit capital to the real estate sector in the coming time.