Greater efforts for bad debt settlement
(VOV) - Banks have spared no effort to deal with bad debts by different means in the hope of settling them for good.
At the National Assembly (NA)’s plenary session on May 30, the State Bank of Vietnam (SBV) Governor Nguyen Van Binh said by April, total debts restructured by credit organizations for businesses had reached VND284,000 billion, accounting for 10 percent of the country’s total outstanding debts.
The banking system has actively resolved bad debts by utilizing the risk prevention fund. In 2012, approximately VND70,000 billion was sourced from the fund for bad debt settlement.
In the first quarter of this year, banks continued to get around VND7,500 billion from the fund and VND68,000 billion will be used to address the issue through the second half of the year.
As a result, a big volume of bad debts have been resolved, helping prevent bad debts from increasing due to slow macro-economic growth. After the Vietnam Asset Management Company (VAMC) goes into operation, it will provide somewhere between VND40,000 and 70,000 billion to help settle bad debts, Binh said.
The SBV has closely coordinated with relevant ministries and sectors in a bid to disburse VND15,000-20,000 billion as part of the credit support package of VND30,000 billion for low-income and middle-income earners who want to buy social houses.
Regarding capital access, the SBV leader said the low purchasing power requires other measures to meet the aggregate demand of the national economy.
Binh asked the NA to let the SBV further lower lending interest rates as a breakthrough in macroeconomic growth.