REFILE-Vietnam's bad debt falls to 6 pct, interest rate cut ahead - official

Thu Feb 28, 2013 6:21am EST

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HANOI Feb 28 (Reuters) - Vietnam's bad debt has been fallen to 6 percent from more than 8 percent earlier and the country's central bank would lower interest rates to stabilise the economy, a senior government official said on Thursday.

"Even though the asset management company hasn't yet been established, the bad debt has fallen from 6 percent from more than 8 percent," said Vu Duc Dam, head of the government office, referring to a plan to set up a new firm by the end of the first quarter to buy bad debts from troubled banks.

"The government has required the central bank to have a roadmap to further lower the interest rates," Dam told reporters. (Reporting by Hanoi Newsroom; Editing by Martin Petty)