Some
local commercial banks did not publicize the figures of their real bad debts,
said Pham Hong Hai, Head of Global Markets, HSBC Bank (Vietnam) Ltd., calling
for transparency in quantifying bad debts and consistency in loan
classification practices, the local newswire Dau Tu Chung Khoan (Securities
Investment) reported.
Bad debts currently represent 3.6% of total
outstanding loans, versus 3.2% at the beginning of the year, said Governor of
the State Bank of Vietnam (SBV) at a press conference held in Hanoi on Apr 11.
However, international organizations warned that the actual figure may climb up
to 12-13%.
The State Bank of Vietnam (SBV) should impose
penalties, such as limiting credit growth; restricting network expansion or
raising required reserve ratio for those banks which deliberately keep their
real NPL figures under cover, Hai suggested.
The country should also open more ‘room’ for private
economic sector and foreign banks to participate in dealing with weak credit
institutions, Hai said.
According to the HSBC executive, governments have to
spend on average 13% of their gross domestic product (GDP) to restructure their
respective financial systems; yet the figure may be much higher or lower in
specific cases, Hai commented.
The International Monetary Fund (IMF) earlier
estimated that the nation may need to spend 5% of its GDP or about $5-6 billion
to restructure the domestic banking sector.
Vietnam’s total lending was estimated to slide 1.96%
in 3M/2012 from late December last year, the central bank said in a statement
released last week. The IMF projected that Vietnam can grow credits by maximum
14% this year, lower than the country’s target of 15-17%.
Dau Tu Chung Khoan | StoxPlus
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