A nearby white warrior hopes to compensate in 15 years from the bank at the center of Vietnam’s biggest financial fraud, according to documents obtained by Reuters. The lender has received a central bank loan equivalent to 5 % of the country’s 2024 economic productivity.
The almost US$ 26 billion that has been pumped into Saigon Joint Stock Commercial Bank (SCB) since a 2022 run on the bank, which was triggered by the imprisonment of the real estate billionaire who successfully controlled SCB, highlights Vietnam’s struggles to control its banks and contain potential regional risk.
As President Donald Trump imposes tariffs on US trading partners, the Southeast Asian nation is scrambling internally as its export-driven business runs the risk of a world trade war.
According to the rescue roadmap prepared by Sun Group, the developer mandated by the main bank in November 2023, SCB is still” entirely dependent on specific money” from the State Bank of Vietnam to cover loan withdrawals. The central bank’s borrowing would reach 657 trillion ( US$ 25.8 billion ) in the first year of reform.
Under the basic incident of the 222-page program, which has not recently been disclosed, the borrower would begin repaying the central banks in the 14th year of the rescue plan, subject to market conditions.
In this scenario, SCB would owe the central bank a full refund within 15 years of the restructuring’s approval, which Sun Group hopes to have as soon as the beginning of the month.
Reuters was unable to confirm whether Sun Group’s plan, which was released on February 17, has the backing of Vietnam’s ruling Communist party or whether it will be approved in accordance with the developer’s timeline.
Sun Group, SCB, the central bank, and the finance ministry did not respond to email and phone requests for comment.