NPLs continue to climb north

June 12, 2013 | 17:36

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Vietnam’s bad debt ratio averaged 3.94 per cent per month in the first four months of 2013, according to statistics reported by credit institutions a dramatic slowing compared to the same period in 2012.

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Overall, until the end of April 2013, banking system non performing loans (NPLs) reached VND137.1 trillion, up by 15.8 per cent compared to the end of 2012.

However, NPLs grew on average 3.94 per cent a month in the first four months of 2013, down significantly from roughly 9 per cent during the same period of last year.

Many experts noted that although the growth of bad debts had been curbed, the NPL ratio had increased continuously due to slow credit growth. The veracity of debt statistics are a source of frequent debate, with some private institutions saying the NPL rate is much higher than state bank estimates.

By the end of April 2013, the bad debt ratio was 4.67 per cent, higher than the ratio of 4.08 per cent in late 2012 and 3.07 per cent in late 2011.

Meanwhile, according to the State Bank, the bad debt ratio as of December 31 2012 stood at 7.8 per cent, down from nearly 9 per cent in September 30, 2012.

By By Nguyen Trang

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