State Bank of Viet Nam plans to reduce the ratio of non-performing loans (NPLs) to below 3 per cent by 2020 under an action plan to implement a government resolution.
Non-performing loans (NPLs) at credit institutions by the end of the
first quarter this year increased to 2.62 per cent from 2.55 per cent
late last year.
Experts are concerned about new non-performing loans rising
significantly while the Viet Nam Asset Management Company (VAMC) still
has to devise radical measures to resolve bad debts acquired from banks.
Credit institutions have been forced to sell their non-performing loans
(NPLs) to national debt dealer Viet Nam Asset Management Company (VAMC)
to meet regulated deadlines.
The Vietnam Joint Stock Commercial Bank for Industry and Trade
(Vietinbank) is planning to sell bad debts worth VND1.5 trillion, or
$71.42 million, to the Vietnam Asset Management Company (VAMC).
How will the VAMC solve the
debt bought from credit institutions? Permanent Deputy Chairman of VAMC''s Member Council Nguyen Quoc Hung has shared his opinion about this issue with local media.
The Government''s VND30 trillion (US$1.44 billion) bank loan package
targeting low income property customers is expected to warm up the
domestic real estate market.Viet Nam News talks with Dr Nguyen Tri Hieu about the loan package''s possible
impact.