IFC wants land use rights as collateral for loans in Vietnam
The Hanoitimes - Vietnamese law does not allow multilateral international financial institutions such as IFC to use red book, or land use rights certificate, for collateral loans.
The International Finance Corporation (IFC), a member of the World Bank Group, has proposed land use rights certificate under Vietnamese Land Law, commonly known as red book for its red cover, be used as collateral for loans provided by IFC and other international financial institutions.
|Deputy Prime Minister Vuong Dinh Hue and IFC's CEO Stephanie von Friedeburg. Source: VGP.|
The IFC also expected to cooperate with Vietnam in developing the capital market by introducing new products to the stock market, as well as supporting the corporate bond market, Stephanie von Friedeburg, IFC’s CEO, told Deputy Prime Minister Vuong Dinh Hue on November 7.
However, Hue said Vietnamese law does not allow multilateral international financial institutions such as the IFC to use red book for collateral loans.
Hue instructed the Ministry of Natural Resources and Environment, the State Bank of Vietnam, and the Ministry of Justice to review the IFC’s proposal and later report to Prime Minister Nguyen Xuan Phuc for consideration.
Hue, meanwhile, welcomed the IFC’s support for the development of Vietnam’s capital market, especially when the Vietnamese government is striving to control public debt, enhancing repayment capability and developing infrastructure projects at the same time.
Hue asked the IFC to provide funds for enterprises and banks to speed up the construction of major infrastructure projects such as Long Thanh International Airport and the North-South expressway project, while encouraging the group to purchase stakes at large commercial banks.
Regarding the issue, Stephanie said the IFC would be willing to support these projects and actively participate in the process of restructuring Vietnam’s capital market.
- Vietnam banks urged to step up third-party risk management
- Vietnam parliament approves state budget deficit of 3.44% of GDP for 2020
- KEB Hana Bank, BIDV close biggest M&A deal in Vietnam’s banking industry
- Foreign investors eye Vietnamese promising insurance market
- Vietnam’s brand value rises to US$247 billion, ranking 42nd worldwide
- Vietnam’s benchmark VN-Index projected to jump 80%: Pyn Elite
- Fintech Challenge Vietnam promotes financial inclusion and digital banking
- IFC wants land use rights as collateral for loans in Vietnam
- Vietnam's US$700-million cashless payment network to be operational next year
The Travel lists Hanoi among ten places to visit in Vietnam
EC impressed with Vietnam’s efforts to address illegal fishing
Seven must-visit locations for coffee drinkers in Hanoi
Foreign businesses seek more revision of Vietnam’s investment policy
Hanoi to host series of activities to celebrate Cultural Heritage Day
Hanoi seeks comment on plan to revive polluted river with river water
Vietnam rejects China’s maritime claims in South China Sea