As per report of credit institutions, the total outstanding loans for real estate investment till the end of May 2012 were about 197 trillion dong (of the total loans of 2,600 trillion dong), of which, bad debts accounted for about 12 trillion dong, equivalent to 6.5%, Nguyen Huu Nghia, head of banking inspection and supervision at the State Bank of Vietnam (SBV) said.
Securities-backed loans also decreased significantly recently, till May 31, the total outstanding loans for securities investment were about 12 trillion dong, accounting for 0.4 percent and bad debts were about 485 billion dong.
Regarding collateral-attached debts, 84 percent of the total outstanding bad loans were enclosed with collateral and only 16 percent were not secured by assets.
In terms of collateral value on total bad loans, the collateral value was equal to about 135 percent of the value of bad debts.
For bad debts with collateral by real estate, the property value accounted for about 180 percent of the total bad debts in real estate.
The bad debts till May 31 were 117 trillion dong, but the risk provisions of credit institutions have been earmarked about 67.3 trillion dong, or 57.2%.