Sacombank has just announced the sale of many properties as collateral to recover debts at a total starting price of nearly 10 trillion VND (434.78 million USD) (Photo: Sacombank) Hanoi (VNS/VNA) - Many banks are auctioningmortgaged assets, mainly real estate, worth trillions of VND to speed up theresolution of non-performing loans.
The Sai Gon Thuong Tin Commercial Joint Stock Bank(Sacombank) has just announced the sale of many properties as collateral torecover debts at a total starting price of nearly 10 trillion VND (434.78million USD), Lao Dong (Labour) newspaper reported.
The assets, which are mainly in HCM City and Hanoi, include ahigh-rise housing and entertainment project, and a land lot in HCM City’s BinhTri Dong residential area. The lender has set the starting price for theassets, which cover an area of more than 534,000 square metres, at more than 5trillion VND.
They also include the 134ha-Phong Phu Industrial Park in HCMCity and three land lots in the city’s Binh Chanh district and district 8. Thestarting prices of the properties are set at 6.65 trillion VND and 1.64trillion VND, respectively.
In Hanoi, Sacombank also announced the sale of eight landlots at a total starting price of nearly 19 billion VND in Hoang Mai and ThachThat districts.
The Bank for Investment and Development of Vietnam (BIDV)also announced it would invite bids for assets of the Sai Gon Pho DongConstruction and Trade Company to recoup total debts of 85 trillion VND. Thesales will have a total starting price of more than 85 billion VND.
BIDV is also selling a land lot in HCM City’s Binh Chánh Districtat an initial price of 18.5 billion VND.
The Vietnam Bank for Industry and Trade (VietinBank) alsoannounced it is selling six assets, including land lots, apartments and cars,as collateral to recover debts. Among them are a land lot in the northernprovince of Vinh Phuc and an apartment in Hanoi’s Keangnam Vina building at aninitial price of 12 billion VND and 6.2 billion VND, respectively.
The Sai Gon-Hanoi Commercial Joint Stock Bank (SHB) has alsoannounced it would repossess 15 assets, mainly real estate, as collateral torecover debts. The bank has so far this year announced it would repossessnearly 60 assets.
According to Nguyen Van Du, Deputy Chief Inspector of theState Bank of Vietnam (SBV), enhanced legal frameworks issued last year havehelped banks and the Vietnam Asset Management Company (VAMC) better manage baddebts by allowing them to rapidly repossess collateral or assets secured withloans if borrowers default.
Truong Van Phuoc, a member of the Prime Minister’s economicadvisory group, said the process of restructuring and handling bad debt hadbrought positive results recently.
According to the SBV, between 2012 and June this year, thelocal banking system handled over 937 trillion VND in bad debts, including morethan 163 trillion VND settled in 2018, bringing the bad debt ratio of thebanking system down to 1.91 percent by the end of June.
Banks also have to speed up the recovery of bad debts astheir bad debts, which have been kept at VAMC for five years but haven’t yetbeen settled, are returning to the banks in 2019.
According to the central bank’s policy on purchasing baddebts of commercial banks, the VAMC has issued special bonds to debt-sellingbanks with a term of five years since 2015. If the bonds mature but bad debtsare not dealt with, they return to the banks in 2019./.
VNA
