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.
