VietinBank puts huge debt on trade

May 18, 2020 | 11:41

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VietinBank has put its VND800 billion ($34.8 million) debt on sales to recover loans they gave out to Bach Khoa Viet Trading-Consultancy-Investment-Construction JSC long years ago.

VietinBank is looking to recover its VND800 billion ($34.8 million) debt in Bach Khoa Viet Trading-Consultancy-Investment-Construction JSC

The bank has just declared selling the collateral backing up Bach Khoa Viet Trading-Consultancy-Investment-Construction JSC's debts. The deadline for filing dossiers to purchase the associated assets is 5pm May 22.

The company’s total outstanding credit at VietinBank's Ngo Quyen branch included VND541 billion ($23.5 million) and $16 million as of May 13. There are 17 collateral assets, including three land parcels and a nine-floor building in Cau Giay district, Hanoi. Moreover, the securities include 42 land-use rights at the Lac Viet Ecotourism project in the central province of Binh Thuan.

Besides, the collaterals include five other land-use rights and land-based assets with the area of 90-245sq.m and one Bentley Bentayga 2016.

In February, VietinBank published its financial statement for the fourth quarter of last year. Accordingly, its pre-tax profit reached VND3.324 trillion ($144.5 million), contrary to the loss of VND1.037 trillion ($45 million) on-year as it had to go into great lengths to with bad debts.

Along with BIDV, VietinBank is one of the local banks shouldering the largest bad debts. In the 2017-2019 period, its bad debts rose by VND1.8 trillion ($78.26 million), extending its irrecoverable debts to VND7.2 trillion ($313 million).

By Van Anh

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