Sacombank partially resolves bad debts

May 04, 2019 | 16:45

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Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has managed to partially resolve its bad debts through the liquidation of its real estate project worth hundreds of millions of dollars in the southern city of Can Tho.

Sacombank has sold its residential area in Can Tho city’s Binh Thuy district

The bank has just liquidated its land use rights for the 602,225 square metre residential area in Can Tho city’s Binh Thuy district. The projectis worth VND3.4 trillion ($148.87 million), VND1.1 trillion ($47.8 million) less than last year.

The residential area is 4.5 kilometres from the city centre and 2.5km from Can Tho International Airport. The Binh Thuy District People’s Committee said that the project’s district committee office, school, and medical centre have all been put into operation.

On the other hand, Sacombank’s other real estate project in Ho Chi Minh City’s Binh Tan district is still dragging the company down by constantly losing its value. This is a 530,000sq.m area in Binh Tan district's Binh Tri Dong B ward. The project is offered for VND5.36 trillion ($233 million), VND669 billion ($29 million) less than six months ago.

On April 26 at Sacombank’s shareholders’ meeting, the bank’s leaders also provided information about the liquidation of Phong Phu Industrial Park in Ho Chi Minh City’s Tan Binh district. In last October, the project was offered for VND6.6 trillion ($286.9 million), VND1 trillion ($43.47 million) less than the first price from last year.

The project’s auctioned assets include 67ha of industrial land and a 67ha area for a supermarket and a hospital. The project was developed by Phong Phu Industrial Park JSC.

Its fourth-quarter financial report stated that in 2018, Sacombank’s total bad debts were VND5.427 trillion ($235.9 million), down nearly half against the beginning of the year. The bank’s non-performing loans also reduced from 4.67 to 2.11 per cent.

By Hoang Van

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