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.
Source StoxPlus
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