WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Banking & Finance
IFC wants land use rights as collateral for loans in Vietnam
Ngoc Thuy 10:29, 2019/11/08
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. 

RELATED NEWS
TAG: IFC World Bank Vietnam collateral loans red book land use rights certificate capital market corporate bond market
Other news
08:08, 2024/10/05
Building Hanoi's smart city with smart banking
In Hanoi's smart city development strategy, smart payment and open banking ecosystems are critically important.
21:34, 2024/09/19
Vietnam stock market clears major legal hurdle to potential upgrade
Starting November 2, foreign investors will no longer be required to pre-fund 100% of their transactions, promising the removal of a major roadblock for Vietnam's market upgrade process.
17:29, 2024/09/01
Cashless parking in Hanoi: Good model fuels smart transport
Hanoi’s leaders believe that all that's left to do is act with the ultimate goal of serving people from smart transportation, armed with the mindset and solutions of a new global vision and thinking.
22:36, 2024/08/26
Banking sector dominates Vietnam’s corporate bond market
The increase in bank bond issuance is largely driven by the need to comply with the State Bank of Vietnam’s capital adequacy requirements.
17:41, 2024/08/06
Prime Minister expects lending to grow by 15% this year
Key challenges for the remainder of the year include lowering interest rates, providing low-cost credit, and adopting cost-cutting technologies.
17:37, 2024/08/06
Vietnam, Singapore strengthen partnership in stock exchange operations
The two sides will focus on cooperation in digital transformation, cybersecurity, tax management, and market operations.