VND252Tln Debts Have Been Restructured by Sept 30 2012, Says SBV Governor

As many as VND252 trillion debts have been restructured by the end of September this year, Governor of the State Bank of Vietnam (SBV) told legislators at a meeting today [Nov 13], the local online newspaper reported.

Total lending of the whole banking sector climbed to VND2,700 trillion, the central banker said.

Local lenders have set aside VND75 trillion for loan loss provisions, up VND14 trillion from last year. VND12 trillion bad loans were tackled by banks’ own provisions, the Governor added.

Many credit institutions reported non-performing loan ratio at modestly 1-3% while the central bank assessed that the figures could climb up to some tens of percentage.

The growth of bad debts has surged since 2008 [74% in 2008, 27% in 2009, 64% in 2011 and 66% year to date], the Governor emphasized, adding that there are five groups of reasons for bad loan increase, including lenders, borrowers, macroeconomic and industry development policies, business conditions and inspection activity.

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