Owning to comprehensive measures, bad debt in credit institutions in Khanh Hoa Province has been only 0.79%
Owning to comprehensive measures, bad debt in credit institutions in Khanh Hoa Province has been only 0.79%
Vietcombank is the first bank buying back the bad debt (VND4,300 billion) sold for Vietnam Asset Management Company to tackle them by the bank’ s financial source. In Khanh Hoa Province, Vietcombank Khanh Hoa always attaches importance to credit quality and taking back bad debts. According to Le Thi Hong Hanh – Deputy manager of Business Customer Department in Vietcombank Khanh Hoa, the bank branch supervises loans closely, has solutions to difficulties of businesses and prevents bad debts. To businesses that have bad debts but are able to recover, the bank branch still continues supplying capital for them to operate under close supervision. The bank branch also encourages such businesses to liquidate unused properties to return debts. To businesses that are unable to recover production and pay debts, the bank branch takes strong measures like sueing, tackling securities, etc. As a result, in 2016 and the first quarter of 2017, the branch collected more than VND52 billion of bad debts. Till April 30, bad debt of Vietcombank Khanh Hoa made up 0.7% of its total credit balance.
BIDV Khanh Hoa has attached importance to solve bad debts to raise financial capacity and reducing lending interest rates. Bad debt at the bank branch is always controlled at under 1%. According to Ho Si Dung – Manager of Business Customer Department in BIDV Khanh Hoa, if borrowers meet temporary difficulties in production and business, the bank branch will support them in various ways. To borrowers losing and have no ability to refund, the bank branch will carry out measures to collect debts.
During many recent years, bad debt in credit institutions in Khanh Hoa has been lower than the average figure of the country. Till end March, 2017, the bad debt in the province was 0.79%.
According to Nguyen Hoai Chieu – Director of the State Bank – Khanh Hoa Branch, it’s owning to the close guidance of the provincial Party Committee and the provincial People’s Committee, the coordination between the banking with departments and the credit institutions’ good treatment to bad debts. To control bad debts and ensure credit quality and safety, the State Bank will manage the banking in the directions like developing credit going together with safety, effectiveness and concentration on production; controlling credit scale; controlling lending in foreign currencies closely; intensifying risk discovery and warning; raising stability on currency and foreign exchange market; etc.
N.D
Translated by T.T
