Update news bad debts
Ten Vietnamese commercial banks, chosen by the State Bank of Vietnam, will be applying international bank management standards in accordance with Basel II governance standards.
It is estimated that nearly 1,000 inspection tours to commercial banks are conducted every year. However, the majority of the inspectors’ reports have never been made public.
VietNamNet Bridge – In a last-minute move, the government has decided not to settle bad debts with money from the state budget, which had been suggested by the Ministry of Planning and Investment.
VietNamNet Bridge – The government has unexpectedly asked the National Assembly to include expenditures on bad debt settlement as part of the state budget.
The Vietnam Assets Management Company (VAMC) has purchased $2.83 billion worth of bad debts from 35 credit institutions by September 1, said Nguyen Quoc Hung – Chairman of VAMC’s member-board.
Surprisingly, no commercial bank has asked for refinancing from the State Bank (SBV), although SBV is ready to disburse funds.
VietNamNet Bridge – The key objective of restructuring the agriculture sector is to raise the income of 15 million farmers, Minister of Agriculture and Rural Development Cao Duc Phat told Viet Nam Economics Times.
VietNamNet Bridge – Economists have urged banks to look to foreign sources to settle their bad debts as Vietnam Asset Management Company (VAMC) has limited funds and can issue special bonds only.