GPBank would get bonds worth VND170.08 billion. Photo nganhangonline.com.vn

HA NOI (Biz Hub) — Vietnam Asset Management Company (VAMC) will issue the first batch of bonds worth VND792.66 billion (US$37.7 million) to buy bad debts from SHB, SCB and PGBank, according to a report from the State Bank of Viet Nam on Monday.

The SBV said the SHB would receive bonds worth VND74.65 billion, PGBank would get VND170.08 billion and SCB would get VND547.93 billion. There will be no interest on the five-year bonds, which come into effect on October 16.

Starting this month, the VAMC signed contracts to buy bad debts from Agribank, PGBank, SCB, SHB and SouthernBank.

Last week, SCB signed a contract to sell VND1.3 trillion ($61.9 million) of bad debt to the VAMC, bringing the total bad debt it sold to about VND1.8 trillion and helping to decrease the bank's non-performing loan ratio to less than 3 per cent. — VNS