VAMC starts handling non-performing loans

September 18, 2013 | 15:31

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The Vietnam Asset Management Company (VAMC) has set to handle VND 40-70 trillion (US$ 18.8-32.9 billion) of non-performing loans (NPLs) in 2013, according to the State Bank of Vietnam (SBV).

The SBV reported that as of July, 2013, total NPLs of credit organizations were valued over VND 138 trillion (US$64.8 billion).

The SBV has signed Decision 1085/QD-NHNN on an action plan of the banking sector to implement the project on "Resolving non-performing loans (NPL) of credit institutions" and the project on "the establishment of VAMC for Credit Institutions of Viet Nam."

So far, credit institutions have positively cut operation costs, restricted dividend shares, controled credit risks, and strengthened investigations and compliance of legal regulations.

They are increasing risk prevention funds to resolve NPLs and reschedule deadlines for debt payments in a bid to minimize difficulties for enterprises.

In the January-August period, three out of four weak commercial banks have been restructured.

The SBV has so far received 24 of the 25 restructuring plans of commercial banks.

VGP

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