Bad debts worth 93.7 trillion VND (4.12 billion USD) were recovered last year. (Photo: cafef.vn)Hanoi (VNA) - Non-performingloans (NPLs) of credit institutions were controlled effectively in 2017,helping the NPL ratio of the entire banking system reduce to 2.3 percent from2.46 percent in late 2016.
Deputy Governor of theState Bank of Vietnam (SBV), Nguyen Kim Anh, said the ratio of NPLs and otherrisky debts that could become NPLs also slid to 7.91 percent by the end of Novemberfrom 10.08 percent at the end of 2016.
From January to Novemberlast year, NPLs worth 93.7 trillion VND (4.12 billion USD) were recovered,raising the total NPLs that were recovered in the past six years to 705.3trillion VND.
The positive result waspossible due to an improvement in legal frameworks for restructuring creditinstitutions and dealing with bad debts, such as the Resolution No 42/2017/QH14issued by the National Assembly and the amended Law on Credit Institutions.
Notably, the National Assembly’sResolution 42 on supporting bad debt settlement has begun to push the bed debtsettlement process, though it has only come into effect for the last four months of 2017. According to the centralbank, the entire banking system recovered a total of more than 50 trillion VND untilDecember 31 based on the resolution.
Reports from the NationalFinancial Supervisory Commission also estimated that the pre-tax of profits ofthe banking sector in 2017 would rise more than 40 percent over the previousyear and after-tax profits by 44.5 percent, mainly thanks to the handling ofbad debt, hastened by the National Assembly’s Resolution 42.
SBV said this year it wouldstep up the restructuring of the banking sector as well as settlement of baddebt.
SBV stated that lendingthis year would continuously focus on the Government’s prioritised sectors,such as agriculture, exports, spare-parts industries, small- and medium-sizedenterprises and hi-tech firms, while limiting the capital to risky industriessuch as real estate and securities.-VNA
VNA
