Finance leasing firms have highest bad debts in HCM City

Wednesday, Dec 11, 2013 17:55

Bad debts reach about $2.67 billion in HCM City. — Photo

HCM CITY (Biz Hub) ― Finance leasing companies have achieved their highest ratio of bad debts in HCM City, reported Tuoi tre (Youth) online, citing State Bank of Viet Nam official Nguyen Hoang Minh.

The deputy director of the SBV HCM City branch told a municipal meeting on Monday that the companies accounted for over 43 per cent of total non-performing loans, followed by financial companies, with nearly 23 per cent.

Banks represented the remainder, he said.

Bad debts in the city were now about VND56 trillion (US$2.67 billion), or 6.13 per cent of total outstanding loans, according to local People's Committee data.

The figure was about VND8 trillion (US$380.95 million) higher than that at the beginning of this year, proving that bad loans were still rising fast, Minh said.

According to Minh, the city removed up to VND14.8 trillion ($704.76 million) of bad debts in 2013 by selling debts to the Viet Nam Asset Management Company, and restructuring loans for businesses. ― VNS

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