The experts made the recommendation because, while existing bad debts have not been resolved yet, new bad debts are estimated to surge when Circular 02/2023/TT-NHNN on debt restructuring and debt repayment postponement expires in June 2024. If including bad debts sold to the Việt Nam Asset Management Company (VAMC), the bad debt ratio of the entire banking system was 6.16 per cent. It meant, despite support, banks' bad debts were still increasing. According to Thức, many people predict that bad debt will increase in early 2024 when corporate bonds come to maturity. Economist Nguyễn Minh Phong believes that bad debts will still be under great pressure in 2024 as the debts are continuously increasing and create an overall quite large bad debt amount.

Source: Viet Nam News December 26, 2023 03:59 UTC