National debt trading scheme kicked off (31/10)
31/10/2012 - 17 Lượt xem
The scale, company's operations as well as criteria for debt purchase have not been disclosed. According to the original idea, SBV will leads and coordinates with the related agencies to run this special business.
Earlier in July, the chief inspector of the State Bank Nguyen Huu Nghia said the total bad debt of the banking system was about VND202 trillion ($10.1 billion) by the end of the first quarter, equivalent to 8.6% of outstanding loans. The current ratio of bad debt, according to the State Bank, remains at 8-10%.
Nghia said 85% of the above bad debts have collateral and the collateral value is equivalent to 135% of total loans. Meanwhile, banks have a risk provision fund of about VND70 trillion ($3.5 billion).
The establishment of a national loan purchase company was initiated last year and the idea attracted mixed views. Supporters said that this idea is needed, to unfreeze the capital flows in banks because of huge bad debts, which can revive business and production.
But there is also concern that if the company is under the State Bank , it will not be transparent, and inefficient. While there is already a debt trading company under the Ministry of Finance, specialized in dealing with outstanding debts of businesses.
"The most important goal of the project is to solve the bad debt at the lowest cost and most effective way. It does not matter that which agency manages this company, but the State Bank is the one that understands and is experienced in this problem," he said.
Of the nine banks that must be restructured, the State Bank recently conducted inspections and invited independent audit firms to work at this banks. The results showed that the bad debts at some banks are much higher than their reports..
Nghia said the restructuring plans of five of these banks have been approved by the State Bank and is being implemented. The remaining four banks (one in the North and three in the South) have not had good plans.
"From now until the end of the year, if these banks do not have suitable plans, the State Bank will take compulsory measures," Nghia said.
Besides these nine banks, some units such as HDBank and Dai A Bank are also preparing for a voluntary restructuring plan. State Bank also plans to arrange financial institutions by merging them into commercial banks, or turning them into subsidiaries of banks.
In the last 6 months, the State Bank bought $ 10 billion. Particularly on October 25, it bought up to $ 100 million.
Source: VietnamNet.
Earlier in July, the chief inspector of the State Bank Nguyen Huu Nghia said the total bad debt of the banking system was about VND202 trillion ($10.1 billion) by the end of the first quarter, equivalent to 8.6% of outstanding loans. The current ratio of bad debt, according to the State Bank, remains at 8-10%.
Nghia said 85% of the above bad debts have collateral and the collateral value is equivalent to 135% of total loans. Meanwhile, banks have a risk provision fund of about VND70 trillion ($3.5 billion).
The establishment of a national loan purchase company was initiated last year and the idea attracted mixed views. Supporters said that this idea is needed, to unfreeze the capital flows in banks because of huge bad debts, which can revive business and production.
But there is also concern that if the company is under the State Bank , it will not be transparent, and inefficient. While there is already a debt trading company under the Ministry of Finance, specialized in dealing with outstanding debts of businesses.
"The most important goal of the project is to solve the bad debt at the lowest cost and most effective way. It does not matter that which agency manages this company, but the State Bank is the one that understands and is experienced in this problem," he said.
Of the nine banks that must be restructured, the State Bank recently conducted inspections and invited independent audit firms to work at this banks. The results showed that the bad debts at some banks are much higher than their reports..
Nghia said the restructuring plans of five of these banks have been approved by the State Bank and is being implemented. The remaining four banks (one in the North and three in the South) have not had good plans.
"From now until the end of the year, if these banks do not have suitable plans, the State Bank will take compulsory measures," Nghia said.
Besides these nine banks, some units such as HDBank and Dai A Bank are also preparing for a voluntary restructuring plan. State Bank also plans to arrange financial institutions by merging them into commercial banks, or turning them into subsidiaries of banks.
In the last 6 months, the State Bank bought $ 10 billion. Particularly on October 25, it bought up to $ 100 million.
Source: VietnamNet.
