Chủ đề: bad debt

The debt restructuring period will only last until June 30, after which the actual bad debts of banks will be revealed and may increase sharply. The State Bank of Vietnam (SBV) is currently developing a legal framework on asset quality and bad debt handling in order to tighten asset quality management at banks and speed up the bad debt settlement process.

Credit risks are tending to rise and are putting pressure on bad debt levels. Controlling and handling bad debts continue to be a huge challenge for Vietnam’s banking sector. Analysts have said that the country needs to speed up the handling of bad debts and adopt comprehensive solutions.

While there are no reports on data just at the moment, the devastation of Covid-19 has put Vietnam’s economy at risk of bad debts. The State Bank of Vietnam has therefore proposed developing a law on handling bad debts for submission to the National Assembly.