All banks permitted to act as guarantee for housing projects

All local and foreign banks and branches are permitted to stand security for housing projects in Vietnam, according to a State Bank of Vietnam circular effective from July 1.

(Photo: SGGP/Financial Investment)

According to the July effective revised Housing Law, investors of housing projects must be guaranteed by banks to ensure customers’ rights.

The banks are responsible for refunding a guaranteed amount of money that house buyers have paid the investors in advance if their houses are not built and delivered on schedule. 

The refund must be made a month after the house delivery date expires.

By Phu Thuan – Translated by Hai Mien

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