HA NOI (VNS) – Vietnamese lenders have resolved more than VND39,000 billion (US$1.8 billion) of bad debt so far this year as the country seeks ways to revive the country's economy.
|SBV Governor Nguyen Van Binh at a press conference yesterday. He said that SBV had taken drastic measures to handle bad debt in the banking system. - Photo vnexpress.net
Total non-performing loans in Viet Nam's banking system are reported to be about VND250 trillion ($12 billion).
The governor of the State Bank of Viet Nam (SBV), Nguyen Van Binh, told a press conference yesterday that non-performing loans at Vietnamese lenders stood at 8.82 per cent of total lending as of September 30.
"We've taken drastic measures to handle bad debt in the banking system," said Binh.
He said strong action in cutting wages and bonuses by many Vietnamese banks during the year and for the coming Tet was one of the sacrifices people were being asked to resolve non-performing loans.
Next year, the governor hopes to resolve debt of VND40-50 billion ($1.92 to $2.4 billion).
According to Binh, lenders have set aside more than VND78 billion ($3.6 billion) for loss provision..
A State Bank plan to set up a national asset management company is expected to be approved by the Government will handle many bad loans. - VNS