15:59 | 24/08/2016 Economy
The Viet Nam Asset Management Company (VAMC) could meet a target to recover VND30 trillion (US$1.339 billion) of bad debts this year, VAMC Deputy General Director Nguyen Van Thang said.
The VAMC office in Ha Noi — Photo kinhdoanhnet.vn
Thang said that VAMC has so far this year recovered VND11 trillion of bad debts, or a third of the annual target, however, the recovery often increases sharply in the last months of the year.
According to VAMC, it has bought VND251 trillion of bad debts from credit institutions since it was established in 2013. Of the total, roughly VND34 trillion was recovered.
The recovery of bad debts has also increased year to year with VND5 trillion reported in 2014, VND12 trillion in 2015 and some VND30 trillion expected in 2016.
According to the State Bank of Viet Nam's statistics, the bad debt ratio of Viet Nam's banking system, as of June 31, fell to 2.58 per cent from 2.78 per cent at the end of May.
The decline came mainly from debtor repayments, moving the debts to the VAMC, risk provisions, and increasing outstanding credit.
Total bad debts handled stood at VND59.71 trillion in the first half of this year, 14.55 per cent lower year-on-year, SBV reported, based on final figures from the VAMC and financial institutions.
Of the total, debtors repaid VND30.97 trillion while VND8.88 trillion were moved to the VAMC, and financial institutions used VND7.24 trillion in risk provision to handle bad debts.
The government has for the past few months issued some regulations related the debt trading market which is expected to boost debt handling./.