Vietnam's bad debt ratio fell to 2.58% in July 2016. Photo: Internet
Trouble loans accounted for 2.58% of total credit at banks operating in Vietnam at the end of June, slipping from 2.78% in May 2016 and nearing to 2.52% in December 2015, the State Bank of Vietnam
(SBV) said Thursday.
As much as 59.71 trillion dong ($2.67 billion) worth of non-performing loans (NPLs) was handled in the first half of this year, representing a fall of 14.55% from a year earlier.
Of the sum, local banks moved $397.7 million off their balance sheets to the SBV-run Vietnam Asset Management Company (VAMC
) and set aside $324.22 million for risk provisions. In addition, borrowers paid back $1.39 billion.
Faster credit growth also helped bring down the bad debt
ratio. Lending at banks expanded 8.54% as of July 29 from end-2015, accelerating from an 8.16% growth recorded a month earlier.
The Vietnamese central bank aims to boost credit growth at 18%-20% this year, following a loan expansion of 17.26% in 2015.