State Bank of Vietnam resolves to halve bad debt amount in 2013
HANOI (REUTERS) - The State Bank of Vietnam will next year resolve half of the burden of bad debt, which now accounts for more than 8 per cent of the banking system's total lending, the government said on Wednesday.
Lenders will resolve 40 trillion to 50 trillion dong (S$2.4 billion S$2.9 billion) out of their sour loans by making provisions, central bank governor Nguyen Van Binh was quoted as saying on the government's news web site.
The national asset management company, the establishment of which is expected to be approved by the government, may settle another 100 trillion dong, Mr Binh said in the report.
Talks about the asset management company helped lift the VN Index on Vietnam's main stock market slightly on Wednesday, analysts said.