ANTD.VN - Many secured assets, mainly real estate, have been put up for sale by banks dozens of times, with starting prices of only 1/2 to 1/4, or even 1/10, of the debt value, but there are still no buyers.
Struggling to sell, price reduction still unsold
VietinBank has just announced the 8th auction of assets securing the debt of Industrial Construction Joint Stock Company.
Currently, this enterprise has a debt balance of nearly 570 billion VND, of which the principal debt is over 327 billion VND, the rest is interest. The assets securing the debt are property rights arising from construction contracts, other property rights and 20 land use rights in Dong Nai.
Meanwhile, the starting price for the collateral as announced this time is only over 156.5 billion VND, down more than half compared to the price offered in the first auction last July of over 327 billion VND and only equal to nearly 1/4 of the enterprise's outstanding debt.
Another secured asset that VietinBank also had to auction off at a "loss" price was the collateral for the debt of Vo Thi Thu Ha Trading Import-Export Company Limited, mostly land use rights and assets attached to the land.
The total value of the provisional debt as of October 31, 2023 is nearly VND 1,500 billion (principal debt of more than VND 567 billion), but VietinBank offered the starting price for the auction of this debt at only VND 142 billion, equivalent to less than 10% of the debt value.
It is worth mentioning that the debt of Vo Thi Thu Ha Company has been put up for sale by VietinBank since 2019 but has not yet been processed.
Similarly, the assets securing another debt of Phuc Dat Joint Stock Company, which are the factory system, machinery, land use rights, house ownership rights and assets attached to land in Hai Duong province, have just been put up for sale by VietinBank for the 17th time.
The debt value is 161.5 billion VND (principal debt is more than 105 billion VND), but the starting price of the collateral is only more than 53 billion VND, nearly half the starting price as first announced of more than 105 billion VND.
Another announcement related to the collateral for the debt of Thang Thao Company Limited, is the land use rights of 5 plots of land in Hai Duong with a provisional debt value of over 30 billion VND (principal debt of 12.6 billion VND). After 7 announcements, the starting price of this asset has decreased from nearly 15 billion VND to only 11 billion VND, equivalent to just over 1/3 of the outstanding debt of the above enterprise.
 |
Many secured assets are liquidated by banks at prices much lower than outstanding loans. |
Similarly, another big 4 bank, BIDV, has struggled to sell many secured assets many times but still cannot find buyers. For example, the bank has posted auction notices for 4 land use rights and assets attached to land in Quy Nhon of Thanh Vinh Company for the 16th time.
Similarly, the collateral assets are all the remaining assets formed from the Phu Hung Long unburnt brick and tile factory project (Ha Tinh) which has been announced for auction 17 times so far. Many other collateral assets, mainly land use rights, have also been auctioned by BIDV dozens of times but still unsuccessfully.
Banks "cry" because of frozen real estate
According to statistics, currently the total value of mortgaged real estate at banks accounts for about 70% of the total assets securing loans, and this ratio at some banks is even up to 80-90%. Therefore, real estate is often the asset that banks auction off the most.
Mr. Nguyen Quoc Hung, General Secretary of the Vietnam Banking Association, also admitted that asset liquidation has been very difficult in recent times. Many collateral assets are valuable real estate that are difficult to liquidate because the real estate market is almost frozen.
Another reason why it is difficult to liquidate bank assets is because the auction price of assets is often not based on market price but is often calculated by adding principal and interest, and each time an auction is posted, the discount is only 5-10%, so some assets are auctioned for more than 2 years before being sold.
For state-owned banks, the liquidation of secured assets is even more difficult, because the Ministry of Finance has not issued a document guiding the method of debt valuation, causing many difficulties and potential risks. Because during the downturn of the real estate market, in many cases the value of assets fell below the principal balance, making banks hesitant to decide to auction assets for fear of losing loan capital after debt collection.
Difficulties in foreclosing collateral are also one of the reasons for the increasing bad debt of banks. According to the State Bank's report, the bad debt ratio of the whole system as of the end of July 2023 was 3.56%, double the figure of 1.69% at the end of 2020; the bad debt ratio of the whole system plus the debt sold to VAMC that has not been processed and the potential bad debt of the whole system of credit institutions is 6.16%.
Experts say the current bad debt situation of banks is very worrying, especially after Circular 02/2023/TT-NHNN on debt restructuring and debt deferral expires, which could make the bad debt figure even more serious than the above figures.
Source link
Comment (0)