Many businesses have scaled down production and reduced their workforce due to the COVID-19 pandemic, leading to a decrease in the number of those participating in social and health insurance, as well as an increase in unpaid social security debts, experts have said.
The Government has directed the State Bank of Vietnam (SBV) to add non-performing loan (NPL) settlement regulations under Resolution No.42/2017/QH14 into the revised Law on Credit Institutions, SBV Deputy Governor Nguyen Kim Anh has said.
The pre-tax profit of the banking system in the second half of this year is estimated to fall 22.1 percent compared to the same period last year due to an increase in provisions for risky loans in the wake of the COVID-19 pandemic.
Indonesia’s foreign debts in the second quarter of 2020 were recorded at 408.6 billion USD, consisting of debts of the public and private sectors, according to the Bank of Indonesia (BI).
Some organisations have rushed to sell shares of Sai Gon Thuong Tin Commercial Joint Stock Bank (Sacombank) to retrieve bad debts, but it was not easy to find buyers agreeing with the offered price.
Businesses and local people in HCM City have had relatively low demand for capital due to the negative impact of the COVID-19 pandemic, resulting in the city’s credit growth in the first half of 2020 falling to its lowest level for many years.
The Indonesian Ministry of Finance said on June 17 the country’s total public debts hit over 5.2 quadrillion rupiah (5 billion USD) as of May, much higher than the previous month and the same period last year.
The World Bank (WB) has called on the Indonesian government to formulate a sound fiscal strategy to “flatten the debt curve” and maintain financial market confidence as debt mounts amid the COVID-19 pandemic.
Commercial banks cut interest rates on 980 trillion VND (42.6 billion USD) worth of loans to support 318,000 COVID-19 affected individual and corporate borrowers by the end of April, the latest data from the State Bank of Vietnam (SBV) showed.
Credit institutions in Vietnam settled more than 26.94 trillion VND (1.17 billion USD) of non-performing loans (NPLs) in the first quarter of this year.
Indonesia’s banks and financial companies restructured debts of over 336 trillion rupiah (22.4 billion USD) for 3.88 million clients hit by the COVID-19 as of May 10, according to the Indonesian Financial Services Authority.
The Vietnam Bank for Agriculture and Rural Development (Agribank) has announced that it plans to reschedule debts worth 250 trillion VND (10.5 billion USD) for pandemic-affected customers in the second and third quarters of 2020.
Many banks in Ho Chi Minh City are selling their mortgaged assets, mainly properties worth trillions of Vietnamese dong, to speed up the resolution of bad debts.
The Bank for Investment and Development of Vietnam (BIDV) has cleared all non-performing loans it had previously sold to the Vietnam Asset Management Company (VAMC), the bank’s Chairman Phan Duc Tu said.
Society
