The Da Nang branch of the State Bank of Viet Nam said that, since the beginning of this year, the city’s commercial banks have tightened their lending regulations to reduce bad debts. 

Many local banks have offered credit packages of between 3 and 50 trillion VND, and they have given top priority to lending to local businesses that have stability and can afford to repay their debts.  As a result, although the banks’ credit growth remained at a low level, they have seen a dramatic decrease in bad debts compared with the same period last year.

In an attempt to deal with bad debts even more effectively, the city’s banking sector has worked closely with the Department of Execution of Civil Judgements.  By March, the Department had received a total of 395 cases involving bad debts.  To date, they have already handled 82 cases totalling around 800 billion VND and 10,000 taels of gold.  However, the department has so far only collected just over 200 billion VND, and the remaining 313 cases are still being dealt with.