SBV to inject more capital into finance leasing companies

The State Bank of Vietnam (SBV) plans to provide more capital this month for the state-owned commercial banks to enable them to recapitalise their finance leasing companies as part of a bank restructuring plan.

The companies comprise VCB-Leaco of the Bank for Foreign Trade of Vietnam, Financial Leasing companies (ALC) I and II of the Bank for Agriculture and Rural Development (Agribank), BLC of the Bank for Investment and Development of Vietnam, and ILC of the Industrial and Commercial Bank of Vietnam (Incombank).

VCB-Leaco officials said the chartered capital of their company would increase from 75 billion dong to some 115 billion dong after recapitalisation. The company, which was established in 1998, reports total outstanding loans of 180 billion dong, with 60% lent to small and medium enterprises.

Do Tat Ngoc, deputy general director of Agribank, said each of ALC I in Hanoi and ALC II in HCM City had a chartered capital of 50 billion dong and their capital would be 100 billion dong after recapitalisation. ALC I and II were both set up in 1999 and have combined outstanding loans of some 800 billion dong at the moment.

Meanwhile, ILC formed in 1998 now has a charted capital of 75 billion dong and has seen its outstanding loans exceed 300 billion dong to date, most of it going to small and medium enterprises. “We do not have any plan to inject more capital into ILC and are waiting for the capital from the government” said an official form the Industrial and Commercial Bank.

Established in 1998, BLC now has outstanding loans of some 400 billion dong. “BLC’s chartered capital stands at 102 billion dong at the moment and is awaiting recapitalisation by the parent bank,” a company official said but declined to give details.

 

Category: Finance