SBV announces VND70 trillion bad debt bailout package

May 31, 2013 | 15:45

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Vietnam Asset Management Company (VAMC) is expected to solve between VND40,000 (USD1.9 billion) and VND70,000 trillion (USD3.33 billion) in bad debts this year, said the State Bank of Vietnam Governor Nguyen Van Binh.

State Bank of Vietnam Governor Nguyen Van Binh.

According to the governor, restructuring measures already taken have helped to solve VND 284 trillion in bad debts over the past year, accounting for 10% of the Vietnam's outstanding loans.

In addition, a large hedge fund of VND68 trillion (USD3.23 billion) has been established to continue settling bad debts to the year's end.

In early March, the government approved a decree to establish VAMC, he said, adding that the State Bank of Vietnam is completing procedures to put it into operation in 2013.

“We have actively cooperated with ministries and agencies, including the Ministry of Construction, to provide VND30 trillion bailout package for low to medium-income individuals to buy houses. Of that sum, around from VND15-20 trillion will be disbursed this year,” the governor noted.

The SBV is also cooperating with the Ministry of Agriculture and Rural Development to offer an assistance package of VND3.3 trillion (USD142.8 million) for coffee growers in the Central Highlands. Several other packages will be offered to support the national economy in time to come, according to the governor.

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