Construction, steel firms BIDV’s biggest debtors

Construction, steel firms BIDV’s biggest debtors

VietFinanceNews.com - Construction and steel sectors have the most overdue loans in the Bank for Investment and Development of Vietnam (BIDV), the lender said in a seminar last weekend.

The bank reported total outstanding loans for corporate clients in key sectors had reached nearly VND271.73 trillion by end-December last year, up 11.7% against 2010. Of this number, overdue loans were mostly taken out by customers in construction and steel industries.

Civil construction companies had nearly VND1.1 trillion in overdue loans in comparison to the VND34.56 trillion lent to this sector while the figures for steel traders and producers were VND1.04 trillion against the lent amount of VND8 trillion, and VND1 trillion against VND6.9 trillion respectively.

BIDV saw a rise in total outstanding loans last year. For instance, the outstanding loans for the construction sector went up to VND4.9 trillion and in heavy industries up nearly VND4.1 trillion. Seafood processing registered a VND1.84 trillion increase in outstanding loans, while wood processing had driven up its outstanding loans of more than VND800 billion.

Under a suggestion by the central bank, BIDV plans to set repayment terms, place new credit ratings, offer corporate debtors lower or preferential interest rates or even conduct merger and acquisition activities.

http://www.vietfinancenews.com/2012/05/construction-steel-firms-bidvs-biggest.html