The state-owned credit institutions'unperformed debts are expected to expand to 30,000 billion Vietnamese dong (VND) (1.81 billion U.S. dollars) till the end of 2008, local newspaper Labour reported on Thursday, citing statistics unveiled by Vietnam Banks Association's Department of Development Strategy for State Banks.
The bad debts of such credit entities hit 22,000 billion Vietnamese dong (VND) (1.33 billion U.S. dollars) for the first nine months of 2008, said the report.
According to the report, bad debts are mainly from unpaid loans of the poor and ineffective operation of enterprises and loans given to real estate traders nationwide. Basing on the capacity of Vietnamese enterprises' loan payment on time, enterprises are ranked as 23 percent of effective performance, 73.2 percent of average performance and 3.8 percent of difficult situation, said the State Bank of Vietnam.
Currently, the "frozen" real estate market has seen slow sales, decline of 30-40 percent, causing difficulties for real estate traders in loan repayment to creditors.
"Debts are said to be incurred by some commercial banks and be reduced if there are information exchanges between the creditors and debtors," said Le Xuan Nghia, head of Department of Development Strategy for State Banks in a recently-held forum.
Source:Xinhua
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