HANOI: Non-performing loans accounted for some 3.21 percent of the total loans in Vietnam’s credit system as of August, according to the State Bank of Vietnam (SBV) on Monday.
The bad debt ratio is expected to reduce to below 3 percent by the end of this year, said SBV Deputy Governor Nguyen Kim Anh at a conference on reviewing bad debt situation held in Vietnam’s capital Hanoi.
Earlier, bad debts ratio in Vietnam’s credit system reached 3. 59 percent of total loans as of the end of February.
Since its establishment in mid 2013, the 100-percent state- owned Vietnam Asset Management Company (VAMC) handled 41.3 percent of the total bad debts, while the remaining was handled by credit organizations.
Managed, supervised and inspected by the SBV, the VAMC is allowed to buy bad debts from banks, recover debts and put collateral up for sale as well as restructure debts.
Chairman of the VAMC Nguyen Quoc Hung said that by Sept. 30, the VAMC had purchased 82.1 trillion Vietnamese dong (around 3.7 billion U.S. dollars) worth of bad debts from credit organizations, reported Vietnam’s state-run news agency VNA.
