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| BIDV is the third State-owned commercial bank to sell its bad debts to the VAMC since early last month. — Photo tinnhanhchungkhoan.vn |
HA NOI (Biz Hub) — The Joint Stock Commercial Bank for Investment and Development (BIDV) plans to sell non-performing loans worth VND1.5 trillion (US$71.4 million) to the Vietnam Asset Management Company (VAMC) this week, the Vietnam Economic Times reports.
BIDV is the third State-owned commercial bank to sell its bad debts to the VAMC since early last month. The first one was the Vietnam Agricultural and Rural Development Bank, which sold non-performing loans worth more than VND8 trillion and the second was the Mekong Housing Bank with VND500 billion.
Permanent Deputy Chairman of VAMC, Nguyen Quoc Hung, said his company has so far bought around VND18 trillion worth of bad debts going by book value. Twenty-four credit institutions have registered to sell bad debts worth more than VND40 trillion to VAMC.
In an interview with online dautuchungkhoan newspaper, Hung said the VAMC had been classifying the bad debts into various groups and hopes to begin selling them in 2014. However, the company is prepared to sell them immediately if it is more profitable for the credit institutions and enterprises.
Hung said there are many domestic and foreign investors willing to buy bad debts from VAMC. However, there many legal obstacles need to be sorted out, including asset ownership, especially real estate owned by foreign investors, and the foreign investors' shareholding rate at enterprises, he added. — VNS