SBV plans to restructure more credit institutions

Wednesday, Apr 02, 2014 17:08

The ratio of non-performing loans currently stands at about 7 per cent, according to the central bank. — Photo

HA NOI (Biz Hub) ― The State Bank of Viet Nam (SBV) plans to buy bad debts worth between VND70 trillion and VND100 trillion, or between US$3.33 billion and $4.76 billion, this year.

SBV Governor Nguyen Van Binh told VnEconomy online that bad debts have declined as the nation's financial measures have taken effect and the economic inventory situation has improved, especially in the real estate area. The SBV is actively completing the regulations to sell bad debts to investors, as many foreigners are interested in buying the loans.

According to the central bank, the ratio of non-performing loans currently stands at about 7 per cent, although credit institution reports show the level to be between 3.6 per cent and 3.9 per cent.

The central bank is also making plans to restructure more lending institutions. "In the coming months, we will directly inspect or hire independent auditors to check credit quality. Around six to seven banks will be restructured through mergers and acquisitions," he said.

Binh added that of the nine credit institutions which were forced to restructure last year, a majority has escaped the risk of collapse and has seen improvement in lending. Only Global Petro Bank is still finalising procedures for selling its entire equity to a foreign partner.

The SBV will issue some new circulars on credit institution security in April, according to Binh. ― VNS

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