VietNamNet Bridge – Credit institutions have reported the bad debt ratio of Vietnam’s banking system at 3.86 percent, while the State Bank’s Inspection Agency announced a bad debt ratio of 9.71 percent at the end of February.

 VietNamNet Bridge – Though recognizing the efforts by the Vietnam Asset Management Company (VAMC), experts have pointed out that VAMC is not experienced enough to deal with bad debts.

 Viet Nam Asset Management Company (VAMC) yesterday purchased more than VND1 trillion (US$47 million) of Saigon Commercial Bank (SCB)'s bad debts using its bonds.

 VietNamNet Bridge – A lot of banks have affirmed that they are willing to sell bad debts to the Vietnam Asset Management Company (VAMC). However, no official deal has been made so far, since banks still “listen to the news.”

General Director Nguyen Huu Thuy told Bloomberg that VAMC will give priority to purchase debts of the banks with the highest bad debt ratios and the debts that are guaranteed by real estate. The first transactions will be done in the next two weeks.

 VietNamNet Bridge – The commercial banks which have the bad debt ratios higher than 3 percent of their outstanding loans will have to sell bad debts to the Vietnam Asset Management Company (VAMC).