HCM City banks set to offload bad debts

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Banks in HCM City are expected to sell about $285.7 million worth of bad loans to the Viet Nam Asset Management Company by the end of the year, according to State Bank official Nguyen Van Dung.

A transaction office of Saigon Commercial Bank. The bank is among HCM City lenders intending to sell bad debts to the VAMC. — Photo nld.com.vn

HCM CITY (Biz Hub) ― Banks in HCM City are expected to sell about VND6 trillion (US$285.7 million) worth of bad loans to the Viet Nam Asset Management Company (VAMC) by the end of the year.

Saigon Commercial Bank, Southern Bank and Navibank will be among the sellers, said Nguyen Van Dung, deputy director of the State Bank of Viet Nam's local branch.

At the end of June, 14 commercial joint-stock banks in the city had about VND9.3 trillion ($442.86 million) in combined provisional funds for bad-debt risks. A total of VND2.3 trillion ($109.52 million) was added during the first half, according to Dung.

HCM City bank operations have become more secure as lenders focused loans into production and business activities and restrict financing high-risk areas, he said. Securities and property loans accounted for only one-tenth of all lending in the first eight months.

Dung urged credit institutions to concentrate loans on efficient investment and business projects to fortify banking stability and help the city reach its annual economic growth target of 9.5 per cent. ― VNS

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