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Banking & Finance

VAMC buys bad debts of $2 billion in Q3

Released at: 19:52, 08/12/2015

VAMC buys bad debts of $2 billion in Q3

$1.92 billion in bad debts purchased and $217 million handled during third quarter.

by Hung Nguyen

The Vietnam Asset Management Company (VAMC) bought VND43.35 trillion ($1.92 billion) worth of bad debts from 39 credit unions, one finance company, and one finance leasing company in the third quarter.

It also handled over VND4.88 trillion ($217.16 million) in bad debts via three different methods: selling VND914.5 billion ($40.69 million), handling collateral assets under civil law worth VND655.5 billion ($29.16 million), and VND3.31 trillion ($147.29 million) via other ways of handling collateral assets.

Mr. Nguyen Quoc Hung, Chairman of VAMC, told local media recently that as at the end of September the bad debt ratio at financial institutions had fallen to 2.9 per cent, of which 41.3 per cent of bad debts were being handled via VAMC. Of the VND226 trillion ($10.05 billion) in bad debts VAMC has bought, about 70 per cent have collateral assets in real estate, such as houses and unfinished projects.

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