On November, 12th, 2013, The State Bank of Vietnam has issued a document No 8421/NHNN-TTGSNH on the implementation of the Prime Minister’s decision (No 843/QD-TTg) on dealing with credit institutions’ bad debts and the establishment of the Vietnam Asset Management Company.

Under the document, the central bank requires credit institutions to basically handle current bad debts by the end of 2015 and improve credit quality, contributing to successfully implementing the project on restructuring the credit institution system in the 2011-2015 period.

Credit institutions are also asked to assess bad-debt situation and credit quality in 2011, 2012 and the first half of this year alongside rechecking bank loans and their potential risks, and evaluating loan borrowers’ financial capacity.

The central bank also urged credit institutions to propose solutions for settling bad debts and improving credit quality.

Source: VNA