Banks’ bad debts estimated at $14.6 billion

Banks’ bad debts estimated at $14.6 billion

At the April press conference of the State Bank of Vietnam (SBV) on Friday, the non-performing loans of the banking sector by the end of February were announced at VND122 trillion ($5.8 billion), accounting for 3.86 percent of the total debt balance.

However, Mr. Dao Quang Tinh, SBV’s vice chief supervisory inspector, said the bad debts would be up to nearly VND308 trillion ($14.66 billion), accounting for 9.71 percent of the total debt balance, if restructured bad debts were included.

Earlier, the National Financial Supervisory Commission said that the bad debt of the banking system is approximately 9 percent, instead of the 15 percent as reported by Moody's.

The central bank also said that deposit growth is currently five times higher than credit growth. By the end of March, loans for the [real] estate business grew 3.95 percent, compared to 1.09 percent of the first 3 months of the year.

Regarding a VND30 trillion package to aid low-income earners in buying homes, the State Bank said that so far credit agreements worth VND3.29 trillion had been signed, of which VND1.89 trillion has been disbursed.

vietnamnet