Vietnam Aims to Cut Bad Debt Ratio to Below 3pct by 2015

Vietnam will strive to curb bad debts of the banking industry at below 3 percent of total lending by 2015 in accordance with international standards and practices, the State Bank of Vietnam (SBV) said in a posting on its official website.

This year, the SBV has been inspecting 26 lenders as part of the restructuring process, the Governor said, adding that the results will be publicized later.

The country has already set up a Steering Committee chaired by a deputy prime minister and participated by representatives from ministries and agencies to settle bad debts, the central banker added.

There is no single set of criteria for quantifying bad debts, said Head of the country’s monetary authority, adding that the central bank’s figure is the most reliable.

Bad loan rise has slowed since June this year, he added.

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