BIDV puts Nam Son arrears on trade to resolve bad debt
BIDV puts Nam Son arrears on trade to resolve bad debt
With the bad debts dragging BIDV down, forcing the bank to recently put the debts of Nam Son Trading Development and Construction JSC (Nam Son) on sale.
BIDV will auction off the Nam Son debt with the starting price of VND241.8 billion ($10.5 million)
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BIDV has just announced plans of holding an auction for the debt which is backed up by six real estate assets. These include houses and land-use rights for a 84.7-square-metre area in Vinh Tuy ward, Hai Ba Trung district (Hanoi), a 69.2sq.m area on 480 Minh Khai in the same district.
Moreover, the assets also consist of the entire capital Nam Son poured into Hung Yen Steel Investment and Trading JSC, development and trade rights for the urban residence area project developed by Nam Son in the northern province of Quang Ninh, apartments No.214 and 616 of No.5 Apartment Building in Hoang Mai district, Hanoi.
The initial price of the debt is equal to the total principal, interest, and the penalty of Nam Son at the time it signed the agreement to put the debt on auction. According to BIDV, as of April 30, the debt was valued at VND241.8 billion ($10.5 million).
As of the end of the first quarter of this year, BIDV’s bad arrears stood at VND19.29 trillion ($838.7 million), 1.1 per cent lower than last year. In 2019, the bank saw nearly VND11.21 trillion ($487.4 million) in unrecoverable debt, occupying more than half of its total bad debts – VND19.451 trillion ($845.7 million).
Based on their financial reports, along with VietinBank, Vietcombank, and SHB, BIDV has been one of the banks with the largest bad debts.
Last year, to recover the bad debt, BIDV put 27 apartments of The Era Town on sale to recover its non-performing loans provided to the project. The price at that round was about VND15 million ($650) per sq.m, fetching VND2.2-5.5 billion ($95,650-239,130) per unit.
