HANOI, Nov 20 (Reuters) – Vietnams national assembly on Monday gave authorities the ability to declare troubled banks bankrupt, through an amendment to a law on the operation of credit organisations, the government website said.
Approval of a bill establishing the right to declare bankruptcies came about five years after the start of a banking crisis that Vietnamese authorities still have not fully resolved.
State Bank of Vietnam Governor Le Minh Hung said recently that bad debts and potential bad debts amounted to 8.61 percent of total credit at the end of September. The level of non-performing loans in September 2012 was 17.21 percent.
Under the laws new provision, which takes effect on Jan. 15, the first step for dealing with a troubl…
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