Central bank notes bad debts increased every month in first three months.
The State Bank of Vietnam (SBV) has updated the bad debt situation in the finance sector as at March. The bad debt ratio continuously rose in the first three months of the year, to 3.49 per cent in January, 3.59 per cent in February, and 3.81 per cent in March.
The SBV said the bad debt ratio is now more accurate and there is no significant difference between the figures tallied by the SBV and those tallied by financial institutions.
In accordance with Circular No. 02/2013/TT-NHNN and Circular No. 09/2014/TT-NHNN issued by the SBV, from January 1 financial institutions had to benchmark the classification of bad debts on each customer from information of the National Credit Information Center of Vietnam (CIC). This may be why bad debts increased every month during the first three months of the year, the SBV said.