VDB’s bad debt ratio exceeds 10pct: SAV

Vietnam Development Bank (VDB)’s bad debts ratio for development investment loans was 12.05 percent and for export loans at 13.42 percent in 2010, said the State Audit Office of Vietnam (SAV) on July 18.

In particular, the bad debts ratio for development investment loans was 12.05 percent and export loans at 13.42 percent in 2010. In addition, VDB’s irrecoverable and maturity loans also increased.

The auditing result also said that VDB provided commercial loans beyond the allowable programmes, resulting in a loss of 18.1 billion dong and overdue debts at 438 billion dong. VDB also contributed capital in Vietnam Finance Investment and Infrastructure Development Joint Stock Corp, which have high risky potential, SAV said.

Regarding Vietnam Bank for Social Policies (VBSP), SAV said that VBSP lent to wrong subjects, entrusted social organisations to lend but did not have mechanism for monitoring, inspection and responsibility for the errors.

VBSP’s bad debts ratio as of December 31, 2010 accounted for 1.2 percent of total loans (overdue debts and doubtful debts accounted for 0.22%).

Also according to the report of SAV, the bad debts ratio of Vietnam Commercial Joint Stock Bank for Foreign Trade (Vietcombank-VCB) in 2010 was 2.91%, from 2 percent in 2009 while the bad debts ratio of Vietnam Commercial Joint Stock Bank of Industry and Trade (VietinBank-CTG) as of the end of 2010 was 1.27%, from the level of 0.66 percent a year earlier.

 

Category: Finance