Prime Minister Asks Central Bank to Settle Bad Loans

The central bank must submit to the Prime Minister a project on enhancing financial capacity, focusing on the non-performing loans (NPLs) of commercial banks before June 30, according to a recent decision of the Prime Minister.

 

The Bank for Foreign Trade of Vietnam (Vietcombank), the central bank said, posted the lowest NPL ratio of only some 3 per cent. Whilst the Bank for Agriculture and Rural Development (Agribank) and the Industrial and Commercial Bank of Vietnam (Incombank) record NPL ratios of some 5-6 per cent.

 

Particularly, the Bank for Investment and Development of Vietnam (BIDV) registers the highest bad loan ratio of up to 9 per cent.

 

Meanwhile, commercial joint stock banks booked relatively low NPL ratios, mostly less than 1 per cent.

 

The State Bank of Vietnam targets at curbing the NPL ratio at less than 5 per cent by 2010. Such a ratio is identified based on Vietnam’s loan categorization standards in line with international rules.
Pioneer, Vietnam Economic Times