Update news VAMC
VietNamNet Bridge – Banks are continuing to struggle with fast rising potentially unrecoverable bad debts.
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.
VietNamNet Bridge – The regulation that banks cannot sell mortgaged assets below face value is the biggest barrier hindering debt settlement.
Surprisingly, no commercial bank has asked for refinancing from the State Bank (SBV), although SBV is ready to disburse funds.
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.
VietNamNet Bridge – Credit institutions have reported the bad debt ratio of Vietnam’s banking system at 3.86 percent, while the State Bank’s Inspection Agency announced a bad debt ratio of 9.71 percent at the end of February.
VietNamNet Bridge – International institutions are remaining doubtful about the ability of the Vietnam Asset Management Company (VAMC) to settle bad debts.
Though the assets offered for sale are plentiful, only few deals have been made.