Bad debts in Viet Nam's banking system in 2013 is estimated at 3.79 per cent of the outstanding loans, the State Bank of Viet Nam (SBV) said on Tuesday.— Photo dantri

HA NOI (Biz Hub) — Bad debts in Viet Nam's banking system in 2013 is estimated at 3.79 per cent of the outstanding loans, the State Bank of Viet Nam (SBV) said on Tuesday.

The central bank achieved its target of reducing non-performing loans (NPLs) in the banking system last year after the Viet Nam Asset Management Company (VAMC), a wholly state-owned company managed by the SBV, bought nearly VND40 trillion (US$1.88 billion) of bad debts from banks, said Le Duc Tho, head of the SBV Office.

Reducing the bad debts of banks will continue to be a key goal of monetary policy in 2014 for SBV, Tho said, adding that it will continue to implement strategies to prevent new NPLs from arising in the future.

Under Directive 01/CT-NHNN on implementing monetary policy and ensuring bank stability in 2014, SBV Governor Nguyen Van Binh has urged SBV units and credit institutions to improve their financial capacities and governance of banking operations and managing NPLs. — VNS