According to a statement released last Friday, the central bank will hire independent auditing firms to look into accounts of credit institutions to check credit quality and loans whose maturity has been rescheduled or kept unchanged.
Earlier, the central bank issued Circular 02 asking banks to review their credit quality and bad debt situation. Lenders were told to report on their plans to sell bad debt in 2014 and specific debt volumes sold to Vietnam Asset Management Company (VAMC) each month.
Sanctions will be imposed on those banks that have failed to submit their bad debt sales reports to the SBV, have not sold their bad debts to or been slow in selling their bad debts to VAMC as earlier committed with the central bank.
In its latest Circular 09 on debt classification, the SBV insists that this circular will not impede the ongoing process of bank restructuring as banks now still have to implement various regulations on reserve funds for bad debt, selling debt to VAMC, converting debt into capital contribution, rescheduling debt and liquidating mortgage assets to recover debt.
Circular 09 also requires banks to report results, contents and reasons of debt restructuring and debt status maintenance. Banks will have to list restructured debt, loans turned into bad debt groups and reserve funds for debt.
Banks are said to benefit most from Circular 09, but the central bank has phased out this in the document. The circular stipulates strict rules that require banks to meet a lot of conditions for debt restructuring.
For instance, customers must have feasible debt payment plans while banks must meet safety ratio criteria. The restructured debt repayment period and maintaining debt status should be done only once.
Đăng ký: VietNam News
