Police on Monday arrested two executives of Vietnam Export Import Commercial Joint Stock Bank, a major lender often known as Eximbank, for allegedly approving a loan to a company without any collateral.
The original value of the loan was VND150 billion (US$6.9 million).
Huynh Thi Trinh, 43, the former director of Eximbank’s Ho Chi Minh City branch, and Pham Duy Hien, 34, the former deputy head of the branch’s corporate department, have been taken into custody pending investigation.
According to police, in 2012, Trinh signed a financing contract to provide credit to Gia Phat Thanh Limited Company.
Hien had previously failed to assess the company’s financial capacity, they said.
The company later defaulted on the huge loan, leading to a massive loss for Eximbank, police said.