Banknotes are cou8nted at a bank (Photo: VNA)

Hanoi (VNA) – The State Bank of Vietnam (SBV) has announced that it is finalizing a project on restructuring credit organisations and handling bad debt for the 2016-2020 period, to be submitted to the Politburo.

After the project receives approval, the SBV will develop plans to implement measures as set out in the project.

According to the SBV, besides improving the safe level of credit organisations, the SBV will focus on enhancing efficiency and effectiveness of state management and discipline in the field, as well as intensifying the fight against law violations in monetary and banking fields.

The comprehensive restructuring across financing, operation and governance of credit organisations will be accelerated using methods and roadmaps suitable with specific characteristics of each credit organisation.

Handling bad debt will be accompanied by preventive measures in order to minimize new bad debt.

In 2017, the asset management company (VAMC) will play a greater role in handling bad debt to maintain the rate of bad debt at the safe level (below three percent of the total outstanding loans).-VNA