Banks massively sell collateral to recover debts

Banks massively sell collateral to recover debts


Banks are stepping up their bad debt handling and recovery activities through the sale of a series of debts and collateral with a value ranging from a few tens to several hundred billion dong.

The most active in asset liquidation is Vietnam Joint Stock Commercial Bank for Industry and Trade (VietinBank, HOSE: CTG (HM: CTG)). This bank has issued dozens of notices about the auction and selected an auction organization of assets and debts to recover bad debts with debts valued from several tens to several hundred billion dong.

VietinBank wants to transfer all debts (principal, interest, fees...) arising with Dai Loc Petroleum Trading and Transport Company Limited at Thu Duc branch for debt recovery. The total outstanding balance of this loan as of May 13 is more than 119 billion VND, including 80.4 billion VND of principal and 38.6 billion VND of interest. The loan is secured by a land lot at 336 Nguyen Chi Thanh, Ward 5, District 10, Ho Chi Minh City and some other assets.

This bank is also selling all debts incurred at Hai Phu Ngoc Co., Ltd at VietinBank Phuc Yen branch. In which, the debt value as of May 13 is 55.2 billion VND, secured by a land plot in Cao Minh commune, Me Linh district (now Phuc Yen city), Vinh Phuc province owned by Hai Company. Phu Ngoc.

With these two debts, VietinBank has not announced the starting price, interested partners will contact the Bank's Debt Management and Handling Department for specific negotiations.

VietinBank also announced the selection of a unit to evaluate the collateral for the debt of VND 1,364 billion of Vo Thi Thu Ha Import-Export Trading Co., Ltd. In which, the value of principal debt is 567.4 billion VND, the rest is interest debt. This debt is secured by a series of real estate such as 4 plots of land in Tan An commune, Thu Dau Mot town, Binh Duong province; 5 plots of land in Chon Thanh town, Chon Thanh district, Binh Phuoc province and many other land lots, factories, and rice warehouses owned by Vo Thi Thu Ha Company in Dong Thap province.

Not only VietinBank but many other banks also massively sold properties to recover debts, many debts were put up for sale many times, even lowered the price quite a lot but still could not have a new owner.

For example, the Bank for Agriculture and Rural Development of Vietnam (Agribank) continuously issued dozens of notices of auctioning land plots to settle debts. Specifically, Agribank is selling collateral for the debt of PMC Construction Investment JSC arising from September 2012 with a value of VND 32.2 billion, as of May 31, 2021. Collateral is 261.6 m2 of land at 11 Bui The My, Ward 10, Tan Binh District, Ho Chi Minh City. The starting price offered is 20.6 billion VND, nearly 40% lower than the loan value.

Agribank will also sell 2 plots of land as collateral, measuring 2,743.1 m2 in Hoc Mon district, Ho Chi Minh City with a starting price of VND 46.7 billion to recover a debt of VND 61.8 billion.

Vietcombank (HM:VCB) also announced the auction of the collateral of the Petroleum Design Consultancy Company - JSC with the starting price of 270.6 billion VND to recover the loan.

In which, the property to be auctioned is 20% of the contributed capital of the Petroleum Design Consultancy Corporation (PV Engineering) in the Dragon Tower office building project (now PV Gas building (HM: GAS) Tower) in HCMC.

Before that, Vietcombank had repeatedly offered to sell debts related to this project but failed. Most recently, the bank put up for sale with a starting price of more than 340 billion VND.

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