Though the bad debt ratio of the banking system has been reported to drop to below 3 percent of its outstanding loans, how to deal with the amount of bad debt is still a troublesome job.
The National Financial and Monetary Policy Advisory Council will concentrate on dealing with the reorganisation of credit institutions and State-owned enterprises, and handling bad debts.
Deputy Prime Minister Vuong Dinh Hue and the Vietnam Asset Management Company (VAMC) discussed the settlement of bad debts during a working session in Hanoi on April 27.
The Vietnam Development Bank needs to accelerate restructuring for more effective operation and sustainable development, Head of the Party Central Committee’s Economic Commission Vuong Dinh Hue has sa
The Vietnam Assets Management Company (VAMC) has issued special bonds to purchase over 92 trillion VND (4.18 billion USD) worth of bad debts from the beginning of this year to October 20.
The Vietnam Asset Management Company has begun to issue a new class of bond against bad debts that can be traded between the central bank and lenders as well as among the latter.
From 2012 to August 2015, credit organisations handled 424.14 trillion VND worth of bad debt, bringing the ratio of bad debt to 3.21 percent this August from 4.93 percent in September 2012.
Starting 2016, the Vietnam Asset Management Company (VAMC) will mainly
buy non-performing loans (NPLs) from credit institutions at market value
and restrict using special bonds for the purchase.
Business
