Keyword: "bad debts"

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The entrance gate to Hanoi’s Ciputra Urban Area, where banks are selling apartments and villas. (Photo: cafef.vn)

Banks selling mortgaged assets to recover bad debts

The Viet Dragon Securities Company (VDSC) said that bad debts might continue to increase slightly this year, after a circular allowing banks to reschedule debt repayment periods and maintain the debt group for certain sectors expired at the end of 2024.

The bad debt ratio of the banking system as of the end of May 2024 was at 4.94%, higher than the 4.55% at the end of 2023. (Photo: cafef.vn)

Bad debts kept rising in five months

Bad debts in the banking system in the first five months of 2024 continued to increase by some 75.9 trillion VND (3 billion USD) against the end of 2023.

The extension is expected to reduce pressure on enterprises which are struggling to service their debts and support economic recovery under the current challenging economic situation. (Photo: VNA)

Policy on rescheduling debt repayment period extended

The State Bank of Vietnam (SBV) has decided to allow commercial banks to reschedule the debt repayment period and maintain the debt group for certain sectors for an additional six months, to support struggling businesses.

A MSB teller counts money at a transaction office. MSB this year will record an extraordinary income growth from bad debt recovery and capital divestment. (Photo: msb.com.vn)

Banks estimate large extraordinary revenues from debt recovery

Some banks, including MSB, Sacombank, VIB and Saigonbank, are expecting extraordinary revenues worth up to trillions of Vietnamese dong from debt recovery this year. In a recent report, Vietcombank Securities Company (VCBS) said Vietnam Maritime Commercial Joint Stock Bank (MSB) this year will record extraordinary income growth from bad debt recovery and capital divestment of its financial company TNEX Finance.

Bad debt remains big concern for banking system in 2024

Bad debt remains big concern for banking system in 2024

The banking sector will continue to face great challenges in 2024, especially those from bad debts when Circular 02/2023/TT-NHNN of the State Bank of Vietnam on credit institutions and foreign bank branches' debt rescheduling and maintaining loan categories to help clients in difficulties expires on June 30, 2024.