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Banking & Finance

HCMC banks' bad debts at 5.49%

Released at: 11:06, 11/08/2015

HCMC banks' bad debts at 5.49%

July bad debt ratio down slightly against June.

by Hung Nguyen

As at the end of July the bad debts of banks in Ho Chi Minh City stood at VND62.2 trillion ($2.85 billion), or 5.49 per cent of total outstanding loans, down from 5.6 per cent at the end of June, according to Mr. Nguyen Hoang Minh, Deputy Director of the State Bank of Vietnam’s Ho Chi Minh City branch.

If the bad debts of the three banks purchased by the central bank (VNCB, OceanBank, and GPBank) were to be excluded, the bad debts of banks in the city would total VND41.7 trillion ($1.91 billion), or 3.7 per cent.

The target for handling bad debts of banks in Ho Chi Minh City is VND25.3 trillion ($1.15 billion), which includes VND3.1 trillion ($142.07 million) that banks must handle themselves and VND22.2 trillion ($1.01 billion) they are required to sell to the Vietnam Asset Management Company (VAMC).

As the end of July banks located in Ho Chi Minh City had sold VND13.9 trillion ($637.03 million) to VAMC and have also nearly completed their own handling of bad debts. With such moves, Mr. Minh said, the bad debt ratio of banks in Ho Chi Minh City is expected to be lower than 3 per cent.

Source: tuoitre.vn

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