The ACB is the first to voice the possibility of selling its bad debt to the VAMC. Photo vietq.vn

HA NOI (Biz Hub) — The Asian Commercial Bank (ACB) may sell VND1.5 trillion (US$71.5 million) worth of bad debts to Vietnam Assets Management Company (VAMC).

The bank is the first to voice the possibility of selling its bad debts to the newly established VAMC, set up on July 26.

General diirector of ACB, Do Minh Toan, said the sum accounted for 50 per cent of the bank's total bad debt.

It's reported that ACB has about 3,090 billion (US$147 million) of bad debt, an increase of 20 per cent compared with the same period last year - the fastest increase in bad debt in the bank's 20 years of operation.

The bank's business result in the first quarter this year showed that its bad debt rate was 2.9 per cent. The bank did not have to sell bad loans to the VAMC, as its non-performing loan ratio was still lower than three per cent.

However, Toan said the sale of bad debt to VAMC would allow it to keep more money in circulation.

VAMC is also working with the State Bank of Viet Nam to try and quickly resolve bad debts.

Toan said he believed that as VAMC bonds were valid for five years, the banks would have enough time to ease pressure on bad debts and continue to do business. — VNS