Saigon Thuong Tin Commercial Joint Stock Bank (Sacombank) has sold collaterals for debt collection, but 90 per cent of this amount is deferred for seven years at an interest rate of 7.5 per cent per annum.
The amount of bad debt that the Vietnam Asset Management Company (VAMC) has to deal with this year accounts for nearly half of the total bad debts VAMC has bought from banks.
These debts have collateral such as real estate, value machines and equipments in Da Nang and Ho Chi Minh City.
The debt is secured with 50,000 square metres of land plots in District 7, Ho Chi Minh City.
The National Assembly’s Resolution No. 42/2017/QH14 dated June 21, 2017 on the pilot settlement of bad debts of credit institutions is expected to remove barriers for the mergers and acquisitions (M&A) in the banking sector.
Total non-performing loans (NPLs) of the entire credit institutions (CI) system until March 31, 2017 were VNĐ160 trillion (US$7 billion).
After a period of actively selling non-performing loans to the Việt Nam Asset Management Company (VAMC), banks are buying back the debts from the VAMC to self-handle.
