Vietnam resolves over VND138 trillion of bad debt: central bank

14:05 | 04/09/2018 Finance - Banking

More than VND138 trillion (approximately US$5.9 billion) of bad debt has been resolved by Vietnamese banks as of June 30, according to an official with the State Bank of Vietnam (SBV).

Deputy PM Vuong Dinh Hue at the conference - Photo: NDO

The information was reported at a conference held by the central bank on August 28 to review the first year of implementing National Assembly Resolution 42/2017/QH14 and the Prime Minister’s Decision 1058/QĐ-TTg on non-performing loans.

The central bank’s deputy chief inspector Nguyen Van Du stated that as of June 30, the ratio of bad debt to total debt had fallen to 2.09 pct compared with 2.46 pct in December 31, 2016.

SBV Deputy Governor Nguyen Kim Anh said that although the resolution and decision have only been in effect for a short time, they have brought about positive changes in the resolution of bad debt and the restructuring of credit institutions.

However, there are still many difficulties in the process, with the general bad debt ratio, including off-balance debt, remaining high at 6.6 pct, requiring banks to take advantage of government policies to resolve bad debt more effectively, said Governor Le Minh Hung.

Speaking at the conference, Deputy PM Vuong Dinh Hue asked the central bank to continue its leading role in restructuring credit institutions and resolving bad debt in order to meet and exceed the targets outlined in Resolution 42 and Decision 1058.

He also urged the SBV to step up its supervision efforts in order to promptly uncover and mitigate the impacts of wrongdoings and bolster public confidence in the banking system.

Theo NDO