Around 10 credit institutions are queuing up to sell theirnon-performing loans to the Vietnam Asset Management Company (VAMC), inan attempt to shore up their balance sheets
VAMC's Vice Chairman,Nguyen Quoc Hung, told local press that banks below the required 3 percent level were also keen to rid themselves of bad loans.
A fullapplicant list is yet to be released, meanwhile VAMC will prioritisebuying back loans from banks running a bad debt ratio of above 3 percent.
Nguyen Van Le, general director of SHB, which plans to sellabout 1 trillion VND (47.3 million USD) of bad debt to the VAMC, toldTuoi Tre that selling the loans would help lower the bank's bad debtratio, consolidate balance sheets and allow special bonds to trade onthe Open Market Operation (OMO).
OCB's Chairman, Trinh Van Tuan,told Tuoi Tre that VAMC's buying programme was the best way to resolvenon-real estate secured loans, which accounted for a big share in thebank's bad debt structure.
The sale would help the bank to put capital in circulation for business operations, Tuan said.
Late last week, VAMC purchased VND170 billion ($8.04 million) of baddebts from PGBank, with the deal helping to lower the bank's bad debtratio from 8 per cent, to around 3 per cent by the year's end.
Thelong list of applications to sell loans fast accumulated after VAMC'spurchase of 11 bad debts for 1.7 trillion VND (80.6 million USD) fromAgribank using its bonds-scheme early last week. The deal wiped 7.56 percent of the bank's bad debt, leaving Agribank's bad debts worth around33.52 trillion VND (1.58 billion USD).
The central bank iscurrently deciding how much the Ha Noi-based bank will get, but earlypredictions show the bank will not receive more than 70 per cent of thebond's value.
VAMC has also been verifying procedures necessary tobuy debts from commercial banks. As planned, the company will issuebonds as much as 30 trillion VND (1.4 billion USD) to buy debt from nowuntil the end of this year.
The State company, which is monitoredby the State Bank of Viet Nam, is hoping the actions will encourageforeign investors to buy the assets, estimated to have substantialmarket value.-VNA
VAMC's Vice Chairman,Nguyen Quoc Hung, told local press that banks below the required 3 percent level were also keen to rid themselves of bad loans.
A fullapplicant list is yet to be released, meanwhile VAMC will prioritisebuying back loans from banks running a bad debt ratio of above 3 percent.
Nguyen Van Le, general director of SHB, which plans to sellabout 1 trillion VND (47.3 million USD) of bad debt to the VAMC, toldTuoi Tre that selling the loans would help lower the bank's bad debtratio, consolidate balance sheets and allow special bonds to trade onthe Open Market Operation (OMO).
OCB's Chairman, Trinh Van Tuan,told Tuoi Tre that VAMC's buying programme was the best way to resolvenon-real estate secured loans, which accounted for a big share in thebank's bad debt structure.
The sale would help the bank to put capital in circulation for business operations, Tuan said.
Late last week, VAMC purchased VND170 billion ($8.04 million) of baddebts from PGBank, with the deal helping to lower the bank's bad debtratio from 8 per cent, to around 3 per cent by the year's end.
Thelong list of applications to sell loans fast accumulated after VAMC'spurchase of 11 bad debts for 1.7 trillion VND (80.6 million USD) fromAgribank using its bonds-scheme early last week. The deal wiped 7.56 percent of the bank's bad debt, leaving Agribank's bad debts worth around33.52 trillion VND (1.58 billion USD).
The central bank iscurrently deciding how much the Ha Noi-based bank will get, but earlypredictions show the bank will not receive more than 70 per cent of thebond's value.
VAMC has also been verifying procedures necessary tobuy debts from commercial banks. As planned, the company will issuebonds as much as 30 trillion VND (1.4 billion USD) to buy debt from nowuntil the end of this year.
The State company, which is monitoredby the State Bank of Viet Nam, is hoping the actions will encourageforeign investors to buy the assets, estimated to have substantialmarket value.-VNA
