4% of real estate loans are bad debts as of Sept 30: Vietnam MOC

The Ministry of Construction (MOC) estimated that as much as 4% of property loans were bad debts as of Sept 30.

The Ministry of Construction (MOC), in collaboration with the State Bank of Vietnam (SBV), prepared a report on the conditions of the real estate market in 2011, in which the Ministry estimated that as much as 4% of property loans were bad debts as of Sept 30, the local online newspaper Vietnam Economic Forum (VEF) reported.

As at end-September, outstanding real estate loans were recorded at VND203.598 trillion, down 13.46% from end-2010 and accounted for 9.25% total loans of the whole system.

Of the total, short-term loans represented 20% or VND40.89 trillion, medium and long-term loans were estimated at VND162.708 trillion. Secured loans accounted for 97% of the total property credits.

Source Sophie/ StoxPlus

Tags: Vietnam banking industry, Vietnam finance, Vietnam financial

Posted by VBN on Jan 1 2012. Filed under Banking-Finance, Real Estate. You can follow any responses to this entry through the RSS 2.0. You can leave a response or trackback to this entry