Governor of the State Bank of Vietnam (SBV) Nguyen Van Binh on August 21
took the floor to answer deputies and voters questions on the settlement of bad
debts, measures to facilitate businesses’ access to capital and the
implementation of restructuring projects.
Binh told the televised Q&A
session, which was part of the on-going 10 th meeting of the National Assembly
Standing Committee, that Vietnam ’s bad debts are yet to reach an alarming
level as credit organisations have contributed VND70 trillion (over $3.3
billion) to a reserve fund and some 84 per cent of bad debts have guarantee
assets.
“If we have a suitable mechanism,
these bad debts can be solved at the lowest cost,” he said.
Regarding measures to address bad
debts, the governor stated that the SBV has basically changed its important
document system for the operations of Vietnamese credit organisations.
These documents, especially those
related to credit activities, will be issued in August or September this year
and are expected to take effect in early 2013, he added.
According to Binh, the state bank
will harmonise the monetary and fiscal policies, speed up public spending,
improve the supervision and efficiency of credit organisations and set up
reserve funds to deal with credit organisations’ bad debts.
The SBV’s reorganisation of
inspectors and its inspections at nine banks in the recent past has proven
effective, helping affirm the position of the state bank’s inspection system,
he said.
The bank will also coordinate
with local authorities and courts at all levels in selling mortgaged assets in
the banking system to create capital sources for handling bad debts.
It will encourage credit
organisations with healthy financial sources to purchase the debts of other
credit organisations as well as negotiate with businesses to turn debts into
shares, helping remove difficulties for them.
The governor affirmed that the
biggest goal of Vietnam now is to restructure its economy intensively in an
effective direction, focusing on commercial banks.
He said that lowering banks’ bad
debts to a safe level, at about 3-5 per cent, is a top target of the SBV. At
present, the entire banking system is making efforts to reduce bad debts,
however, this depends much on the domestic and international economic situation.
VIR/VNA
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