Government to stimulate stock, real estate markets

27/02/2008 -- 5:18 PM

Ha Noi (VNA) – Deputy Prime Minister Nguyen Sinh Hung affirmed that the government will take drastic measures to stimulate the development of the securities and real estate markets and fight against speculative activities. “We have to boost the stock market and do not let it slide because it is an important channel to draw capital in a long run,” Deputy PM Hung said in his talks with the press on February 26. Stock bourses in Ho Chi Minh City and Ha Noi experienced more declines than gains in the past two weeks, with the VN-Index remaining below the 700-point benchmark. The government leader also affirmed that loans will continue to be provided to real estate developers for the sake of the real estate market. “If demands for investment for socio-economic development and even that of the real estate are healthy and on the right direction, loans are granted to them,” Deputy PM Hung announced. “Currently the real estate market is ‘hot’ because supply does not really meet demand,” the government reckoned, vowing that property development projects that showed signs of speculation will be examined and handled. He also admitted some failures in managing the financial-monetary market in the recent time so that they caused several fluctuations in the market, affirming that adjustments will be made soon following the meeting between the Financial-Monetary Council and the Prime Minister. On February 26, the State Bank of Viet Nam released a package of emergency measures to regulate the monetary market, asking commercial banks to focus on granting credits to feasible projects and tightening the loans for real estate investment to eliminate factors that may produce adverse impacts on the market. The State Bank of Viet Nam pledged to continue to manage open market and other channels to replenish capital in a flexible manner to assist commercial banks in guaranteeing their liquidity capability.-Enditem
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