Nov 27, 2012

Vietnam - Vietnam Foreign Debts To Rise 37% If Bonds Are Issued To Tackle Bad Debts

Follow Me on Pinterest
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


Business & Investment Opportunities
Saigon Business Corporation Pte Ltd (SBC) is incorporated in Singapore since 1994. As Your Business Companion, we propose a range of services in Strategy, Investment and Management, focusing Health care and Life Science with expertise in ASEAN 's area. We are currently changing the platform of www.yourvietnamexpert.com, if any request, please, contact directly Dr Christian SIODMAK, business strategist, owner and CEO of SBC at christian.siodmak@gmail.com. Many thanks.

No comments:

Post a Comment