HCMC focuses on bad debts - HCMC focuses on bad debts - Website Ho Chi Minh City
On May 12, HCMC’s Congress Delegation had a working session with The State Bank of Vietnam (SBV)- HCMC branch and credit organizations on reports on results of currency market and banking activities in HCMC in the first 4 months of 2015.
According to SBV-HCMC Branch, currency situation in HCMC continues to remain stable, mobilizing rate and lending rate continue to fall that creates favorable for enterprises to approach loans. In the first 4 months, saving deposits of people increase by 6% compared to the same period. Credit increase by 4%, a highest growth rate in recent years. Especially, medium and long term loans increase by 7,6%. Through the bank - business connectivity program, banks have lent nearly VND 31,000 billion. However, bad debt still remains at high level with over 5,53% of total outstanding loans in HCMC. Till March 31, bad debts in HCMC stayed at VND 60,883 billion, of which bad debt of group 5 (potentially irrecoverable debts) accounts for the highest rate. This rate enjoys a slight increase compared to that of 2014.
Mr. Nguyen Hoang Minh, Deputy Director of SBV-HCMC Branch said that handling of bad debt continues to be a key task of banking system. In the first 3 months, HCMC has handled a bad debt of VND 6,112 billion. According to the plan, bad debt must be handled and stayed under 3% of total classified assets.