Vietnam to Force Banks to Sell Bad Debt to Asset Company
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Vietnam plans to force the sale of non-performing loans to a soon-to-be established asset management company and clear up nearly $5 billion of bad debt, as the government steps up its banking overhaul efforts.
Lenders with bad-debt ratios of 3 percent and above will be required to comply, State Bank of Vietnam Chief Inspector Nguyen Huu Nghia said yesterday, citing a final proposal that is awaiting the prime minister’s review and approval.