Latest News about bad debts
Non-performing loans (NPLs) among commercial banks increased sharply in the first three quarters of this year due to the adverse impacts of the COVID-19 pandemic.
A number of banks have announced plans to auction off their collateral assets in an attempt to speed up bad debt recovery.
At Sacombank’s annual general meeting held on June 5 its permanent vice chairman Pham Van Phong said that in 2019 the bank’s pre-tax profit increased by 43.2 per cent to VND3.2 trillion (US$137.5 million), which was 21.4 per cent above the target.
The Vietnam Asset Management Company (VAMC) targeted to settle bad debts worth totally VND50 trillion (US$2.15 billion) this year.
Commercial banks all can anticipate a sharp fall in profits this year because of Covid-19, though they faced difficulties later than other businesses.
Forty-nine BOT (build-operate-transfer) transport projects have been reported as having revenue below expectations.
Overdue debts, which are increasing rapidly during Covid-19, will adversely affect business results and capital growth capability of many commercial banks in Vietnam.
Many banks in Ho Chi Minh City are selling their mortgaged assets, mainly properties worth trillions of Vietnamese dong, to speed up the resolution of bad debts.
Twelve out of 40 commercial banks have so far cleared all their non-performing loans (NPLs) kept at the Vietnam Asset Management Company (VAMC).
Kien Long Bank has become the eighth bank to clear all bad debts they had previously sold to the Viet Nam Asset Management Company (VAMC) before the maturity date, VAMC announced on Tuesday.
Commercial banks are attempting to sell off a host of mortgaged assets, including real estate and cars, to speed up the settlement of huge bad debt.
Growing bad debts reaching hundreds of millions of US dollars keep pressuring BIDV, Vietcombank, and VietinBank.
Local cement company Cong Thanh Group’s trillion-VND debts at Vietinbank will be shifted to Vietnam Asset Management Company (VAMC).