The branch unveiled the above information in a review report on last year’s performance and this year’s operation orientation.

As per the report, the fifth-group debts – seen as the worst non-performing loans - accounted for a high portion of overall bad debts among the local lenders.

A large part of the bad debts was from loans given to the property sector. A local bank even reported the value of realty loans shot up to 70% of its total outstanding loans as of the end of last year.

Another report by the branch showed that Vietnam Bank for Agriculture and Rural Development, or Agribank, has the highest ratio of bad debts, at over 15% out of the four state-owned commercial banks.

Meanwhile, the average ratio of non-performing loans of commercial joint stock banks in the city was 2.59%.

In contrast, commercial joint stock banks whose headquarters are located outside HCMC posted the figure at more than 26%. Also, finance companies in the city suffered a 16.97% ratio for the non-performing loans while that of finance leasing ones was 23.31% as of end-November in 2011.

However, people credit funds at the end of November last year had only a ratio of bad debts at 5.46%.

The city’s credit institutions reported their total bad debts in the primary market servicing residents and organizations at 3.85% at the end of last year’s November. The statistics by the HCMC Branch pointed out that most banks enjoying low profits or mired in losses or high bad debt rates are due to having been involved in real estate-related loans.

The central bank affirmed that credit activities of the banking system this year will continue facing unexpected risks as uncertainties of the property market and local enterprises remain unpredictable. Therefore, the branch urged local banks to closely supervise bad debts and give out appropriate solutions.

Also, the branch requested its members to handle and minimize arising bad debts as well as ensuring the bad debt ratio at the level of less than 5% to the total outstanding balances.

In addition to credit risks caused by rising bad debts, the branch proposed credit institutions strictly manage term risks. “It is very difficult to adjust the structure of short-term deposits in sync with long-term loans and thus the capital usage at small commercial lenders has been burdened with heavy pressure for fear of term risks,” the branch explained in its report.

Recent statistics from the branch revealed that total debts relating to non-productive sectors including consumer credits, real estate loans and loans for securities as of September 30 last year made up 18.57% over total outstanding balances, down 0.03% from the beginning of the same year.

The total mobilized deposits in the city as of December 31 last year reached VND888.9 trillion, up 10% year-on-year while the credit growth at the year’s end was estimated at 6.3% against 2010.

Staggering working hours meet grim reality in Hanoi

By Thoa Nguyen - The Saigon Times Daily

HANOI – The decision on introducing the staggering working and study hours came into force in Hanoi City on Wednesday, which improved transport not much but left the people, especially students and their parents, great inconvenience.

Le Thi Tinh, a senior high school teacher in Hanoi shared that as classes of junior high school students start 30 minutes earlier, it won’t be a big challenge for single teachers like her since she only needs to get up earlier.

However, it can pose difficulties for those teachers in managing time to pick up their children who start their classes on a different time frame.

“Parents must leave for work between 6:00-6:30am while their children start classes at 8:00 am. If they leave at the same time, their children must wander around until their schools open at 7:30. Unless they hire other people to pick up their kids for school, that scenario will happen as a matter of fact,” Tinh said.

Moreover, the classes of elementary and junior high schools end later, which could affect the schedule of tutor classes in the evening.

Therefore, many citizens in the capital city have complained of inconveniences.

Under the Directive 315/QD-UBND issued by Hanoi City’s authorities, new working and study timetable is applicable to three main groups.

College, university and senior high school students under Group 1 will start classes at 6:30 am and end at after 7:00 pm. For Group 2, kindergarten, elementary, and junior high school student start classes at 7:30am and end at 5:30 pm, while State and local officials start work at 8:00 am and end at 5:00 pm.

For Group 3, commercial centers and service providers (except for banking and financial services) start service at 9:00 am and end after 7:00 pm.

Only workers at factories and processing zones see their working hours unchanged.

In line with this change, the Hanoi Department of Transport has adjusted timetable of multiple bus routes. Particularly, peak hours for bus transport will last from 6:00 am to 9:00 am and 4:30 pm t0 7:30 pm.

The interval of bus routes running by universities and colleges will shorten to 7 minutes per trip. The number of these bus routes will increase to 123 trips a day.

Moreover, local transport department plans to establish six additional express bus routes with total number of 97 trips a day.

Source: Saigon Times.