Bad debts increase

In 2016, VAMC planned to handle 1.3 billion US dollars of bad debts. But as of August, only 494 million US dollars of bad debts have been tackled, accounting for 35% of the goal.

While VAMC are struggling with non-performing loans, the number of bad debts in the banking system recently is on the rise. Statistics show that 9 commercial banks listed on the stock market mid-year currently saw nearly 2 billion US dollars of bad debts, up 28% year on year. It is attributed to restructured or postponed loans that have accumulated from previous years. Firms have yet to recover as expected to pay both principal and interest.