bad debts

Update news bad debts

The Government has proposed the National Assembly allow extending the validity of Resolution 42 on bad debt settlement until 2023, it was announced at the 15th National Assembly’s third session on May 24.

Bad debts affecting key industries

The worrisome situation of rising bad debts during the ongoing Covid-19 pandemic has affected several key industries. 

VN banks struggle to sell mortgaged land to collect money for debts

Many banks are rushing to sell land and other assets used as collateral for loans to collect debts, including properties worth trillions of dong.

Banks prepare capital to meet credit demands in 2022

Banks have been increasing the attraction of deposits to have enough capital for the credit needs of customers. Credit demand is expected to increase from the first quarter of this year.

Experts suggest banks not be involved in economic recovery packages to avoid bad debts

Though businesses need the Government’s economic recovery packages to rebound from the pandemic, the Government should consider limiting the participation of commercial banks in the packages to help them avoid bad debt risks, experts suggest.

Bad debts need to be curbed

After the Circular issued by the State Bank of Vietnam on debt restructuring, many bad debts of commercial banks have become non-bad debts because they do not have to change the debt groups.

VN banks boost sales of mortgaged real estate to recover bad debts

Many banks have recently offered to sell mortgaged assets, mainly real estate, worth billions of VND, to recover debts amid the recovery of the realty market.

Solutions proposed to handle bad debts amid COVID-19 pandemic

Bad debts may climb by the end of the year as the pandemic has interrupted the production of many enterprises and they had no revenue to repay debts. 

Bad debts of 20 banks up 4.5% in 2020

The non-performing loans (NPLs) of 20 local banks at the end of 2020 rose by 4.5 per cent year-on-year to VND83.4 trillion (US$3.58 billion), according to the banks’ latest financial statements.

Pandemic causes bad debts to surge

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.

Banks need to be cautious of bad debts

The financial statements of the third quarter of this year of commercial banks showed that more than two-thirds of banks posted fairly high growth in their profits amid the context that the economy was still facing the Covid-19 pandemic.

Bad debts tend to rise despite slow credit expansion

Non-performing loans are still increasing despite slow credit expansion as the COVID-19 pandemic stretches many businesses to their limits.

 

Banks to sell collateral assets amid fears of rising bad debts

A number of banks have announced plans to auction off their collateral assets in an attempt to speed up bad debt recovery.

 

Restructuring, bad debts prevent VN banks from paying dividends

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.

VN Asset Management Company targets to settle $2.15bil. bad debts this year

The Vietnam Asset Management Company (VAMC) targeted to settle bad debts worth totally VND50 trillion (US$2.15 billion) this year.

VN banking sector 2020: lower profitability, higher vulnerability anticipated

Commercial banks all can anticipate a sharp fall in profits this year because of Covid-19, though they faced difficulties later than other businesses.

Nearly US$3 billion worth of loans to BOT projects likely to become bad debt

Forty-nine BOT (build-operate-transfer) transport projects have been reported as having revenue below expectations.

Vietnamese banks warned about capital shortage risk

Overdue debts, which are increasing rapidly during Covid-19, will adversely affect business results and capital growth capability of many commercial banks in Vietnam.

Banks sell mortgaged assets to resolve bad debts

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 banks clear all bad debts at VAMC

Twelve out of 40 commercial banks have so far cleared all their non-performing loans (NPLs) kept at the Vietnam Asset Management Company (VAMC).