26.2 C
Ho Chi Minh City
Wednesday, June 26, 2024

Three problem banks to be transferred by year-end – Govt report

The Saigon Times

Must read

HCMC – Three problem commercial banks will be transferred by the end of this year, Deputy Prime Minister Le Minh Khai said on Monday.

He mentioned the forced transfers of the three banks while delivering a Government report on the opening day of the seventh sitting of the 15th National Assembly (NA) in Hanoi today, May 20.

The Government has completed the valuations of Vietnam Construction Commercial Bank (CBBank), Ocean Commercial Bank (OceanBank), and Global Petro Commercial Bank (GPBank), and the proposals for the transfers of the trio are expected to be submitted for approval in May.

The State Bank of Vietnam (SBV) has been managing these three banks since they were put under special watch.

These transfers are part of the Government’s effort to restructure four cash-strapped banks. DongA Bank remains under the SBV’s special control but is not included in the transfer plan.

In 2023, the SBV received approval to transfer CBBank, OceanBank, and GPBank through compulsory purchase agreements. Separately, CBBank is undergoing restructuring, having reduced its cumulative losses by 20% and cut non-performing loans by 37.7%, equivalent to VND15 trillion, by the end of April.

At the meeting, Deputy PM Khai reported that Vietnam’s economy remained stable in the first four months of 2024. GDP growth in the first quarter was 5.66%, the highest in three years. The average consumer price index rose by 3.93% year-on-year.

State budget revenues hit 43.1% of the full-year target, and rose by 10.1% from the same period last year. Export revenue increased by 15%, resulting in a trade surplus of US$8.4 billion. Public investment disbursement reached 17.46% of the annual plan, the highest in four years.

New foreign direct investment (FDI) approvals in January-April amounted to US$9.27 billion, a 4.5% year-on-year increase, with capital from new FDI projects jumping 73.2% to US$7.11 billion. FDI disbursements totaled US$6.28 billion, the highest in five years.

Vietnam’s monetary and foreign exchange markets remained stable, with interest rates staying low. State budget revenues exceeded VND1,750 trillion, 8.2% above expectations. The budget deficit was around 3.5% of GDP, with public debt at 37% of GDP and Government debt at 34% of GDP, both within limits.

By the end of 2023, about VND680 trillion was allocated for the new wage policy.

More articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Latest articles