Bad debt and maturing bonds will be issues of concern in 2024

According to the 2024 macroeconomic outlook report of DSC Securities, the bad debt situation along with pressure from maturing bonds will be notable issues in the coming year.

Specifically, the bad debt ratio of listed banks still shows signs of increasing sharply despite policies to support people and businesses. However, these are mostly credit debt and bond debt extension policies. DSC Securities assesses that these are only policies to help businesses prolong the time and do not really solve the problem thoroughly.

Maturity of corporate bonds and bad debt will remain issues of concern in 2024 (Photo TL)

In 2024, DSC Securities forecasts that the bad debt situation will likely become more tense as the real estate market remains gloomy. The bad debt situation of real estate enterprises will also affect the market as the total credit of this group still accounts for a large proportion, up to 21%.

In addition, Circular 02 of 2023 of the State Bank of Vietnam allowing debt extension also expires in June 2023, which is also a factor affecting the bad debt situation in 2024.

The amount of maturing bonds will accumulate towards the end of 2024 (source: DSC)

For the Corporate Bond market, the issuance volume has yet to recover to the peak achieved in 2021. Specifically, in 2021, the value of corporate bonds issued accounted for VND 408,974 billion. In the two consecutive years of 2022 and 2023, the issuance volume decreased by nearly 2/3, only recording VND 141,760 billion at the end of November 2023.

Meanwhile, the amount of corporate bonds maturing in 2024 tends to increase gradually towards the end of 2024. Of which, the real estate bond group alone accounts for 120,000 billion VND, the highest in the past 5 years.

Source: https://www.congluan.vn/no-xau-va-trai-phieu-den-han-se-la-van-de-duoc-quan-tam-trong-nam-2024-post279419.html