If bad debts are to be tackled through money solely coming from bond issuance, total foreign debts of the country will increase from $48.9 billion in 2012 to $67 billion in 2013, or an increase of 37%.
If bad debts are to be tackled through money solely coming from bond issuance, total foreign debts of the country will increase from $48.9 billion in 2012 to $67 billion in 2013, or an increase of 37%, according to Business Monitor International (BMI).
To date, the government has yet to approve the scheme to set up a national debt trading company with expected capacity of VND100 trillion.
According to the Economic Committee of the National Assembly, Vietnam needs VND250-300 trillion to handle bad debts with possibility that the government will have to issue bonds to tackle non-performing loans, putting great pressure on public debts.
“To minimize adverse influence to the economy, the government should only support the banks with the ability to develop and let weak lenders go bankrupt,” representative of the consultative group on macroeconomic policy warned.
The concentration of resources on a number of banks will raise capital use efficiency and, at the same time, place more pressure on weak banks, which helps to speed up the bank restructuring process.
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