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Agribank must go IPO by 2020, clear all bad debts

Update: February, 12/2019 - 16:40
Deputy Minister Huệ addresses a working visit to state-run Agribank on Monday. He demanded Agribank launch an Initial Public Offerings (IPO) by 2020. — Photo anninhthudo.vn
Viet Nam News

HÀ NỘI — The Vietnam Bank for Agriculture and Rural Development (Agribank) must resolve all non-performing loans kept at the Việt Nam Asset Management Company (VAMC) soon, said deputy PM Vương Đình Huệ.

Huệ made the statement during his working visit to the state-run bank on Monday.

He also demanded Agribank to launch an Initial Public Offering (IPO) by 2020.

“One of the main tasks for Agribank in 2019 is to speed up preparation for the transformation from a State-owned bank into a joint-stock commercial bank, attracting strategic investors,” Huệ said.

The deputy PM said 2018 was a positive year for Agribank as it achieved higher profit and lower bad debts compared to 2017.

The largest Vietnamese bank by assets reported profit of VNĐ7.6 trillion (US$325 million) last year, while provisions for credit risks were estimated at VNĐ20 trillion.

The bank’s non-performing loans kept at the VAMC dropped by over VNĐ9.4 trillion to VNĐ9.59 trillion in the first half of 2018, the bank’s latest audited financial statement showed.

Huệ said Agribank needed to continue their second phase restructuring process with a focus on resolving bad debts.

At present, by using IT and Fintech applications in the finance – banking sector, Agribank should continue to arrange and restructure its internal organisations, in parallel with a focus on the development of agriculture sectors, farmers, rural areas, agricultural enterprises, household businesses and farm co-operatives, Huệ said. — VNS

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