Agribank, VAMC coordinate in settling bad debts

The Vietnam Bank for Agriculture and Rural Development (Agribank) and the Vietnam Asset Management Company (VAMC) will work closely together to review bad debts and put forth proper measures to accelerate the settlement and recovery of bad debts.

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To this effect, a cooperation agreement was signed between the two units late last week.

Under the agreement, the two sides will cooperate in developing a roadmap for bad debt settlement for every single year in the 2017-22 period.

Chairman of the Board of Agribank Trinh Ngoc Khanh said his bank is determined to actively coordinate with VAMC in dealing with bad debts in the coming time and accepts to reduce lending interest rates to support customers to pay debts.

As of September 30, 2017, Agribank continued to lead commercial banks with total assets and capital reaching over VND1 trillion (US$44 million) and outstanding debts of VND813 trillion (US$35.77 billion), 73.9% of which were agriculture and rural loans.

The State Bank of Vietnam has selected six credit institutions -- Sacombank, ACB, BIDV, Vietcombank, VietinBank and Agribank -- to pioneer the implementation of Resolution No. 42, aimed at speeding up bad debt settlement.

VAMC bought more than VND25.53 trillion (US$1.12 billion) of non-performing loans (NPLs) from 14 credit institutions in the first nine months of this year.

Since its establishment in 2013 until the end of September this year, the company had bought NPLs worth a total of more than VND301 trillion from 42 credit institutions for VND270.92 trillion.

VNA

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