Agribank Auctions Numerous Valuable Secured Assets

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The Commercial Joint Stock Bank for Agriculture and Rural Development of Vietnam (Agribank) is selling a dozen of secured assets and bad debts, of which many assets are worth hundreds of billions of dong.

Specifically, Agribank auctions the assets secured for the loans of Dai Viet Company Limited at Dak Nong and West Hanoi branches.

The first secured asset is all machinery, equipment, working houses, and other construction works of the industrial alcohol production plant and related items in Tam Thang Industrial Park, Cu Jut district, Dak Nong province.

The second asset is the warehouse, material preliminary processing plant, drying system, working houses, workers’ accommodation, and electronic balance system in Tam Thang Industrial Park, Cu Jut district, Dak Nong province.

The starting price of the asset is 303.240 billion dong. The auction is scheduled on June 26th 2019 in Dak Nong province.

Agribank is also selling the debt of Hung Long Phuoc Production Construction Joint Stock Company at Saigon centre branch.

As of April 23rd 2019, the total outstanding loans of the debt reached nearly 443 billion dong. In which, the debt principal was 284.5 billion dong and interest balance was 158.4 billion dong. The starting price set Agribank is 285.1 billion dong.

The secured asset for this debt includes the right to use 37,667.7 square-metre of leased land at Lot B4, Road No.8, Hiep Phuoc Industrial Park, Hiep Phuoc commune, Nha Be district, HCM City. The secured asset also includes a production plant for manufacturing pre-stressed concrete piles of the concrete component production factory at Lot B4, Road No.8, Hiep Phuoc Industrial Park, Hiep Phuoc commune, Nha Be district, HCM City; all machinery and equipment in the first phase and second phase of the concrete component production factory. Other movables include four automobiles, machinery and equipment of the concrete component production factory supplemented in 2017 and in 2019.

Agribank has recently been promoting the bad debt settlement. According to the bank’s recently announced 2018 financial statement, the bad debts of Agribank by the end of 2018 fell by 1.918 trillion dong compared to the beginning of the year. Accordingly, the bad debt ratio significantly dropped from 2.05 percent to 1.6 percent. In addition, the value of bad debts at Vietnam Asset Management Company of Agribank significantly declined from nearly 41 trillion dong to 7.749 trillion dong. VAMC’s special bonds at Agribank were provisioned at 5.394 trillion dong.

 

Category: Finance, Vietnam

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