Eximbank's stock faces restriction after losses uncovered

By Mai Ha, Thanh Nien News

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An undated photo of an Eximbank office in Ho Chi Minh City. Photo: Diep Duc Minh An undated photo of an Eximbank office in Ho Chi Minh City. Photo: Diep Duc Minh

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The Ho Chi Minh City Stock Exchange has issued a warning against partly-private lender Eximbank after an inspection found accounting violations and led to the bank declaring losses for two consecutive years. 
Its stock will be on a watch list starting April 8, the bourse's regulators said in a statement on Monday.
That means margin trading will no longer be allowed. If the bank continues to post another loss this year, it will be delisted. 
Eximbank originally reported profit of VND114 billion (US$5.03 million) at the end of 2014, after selling some of its assets to its real estate arm Eximland. 
However, in October last year inspectors questioned its financial viability when discovering that the bank had actually bought the assets back and yet still recorded only the sales. 
Eximbank then made changes in its books and officially announced losses of VND834.56 billion ($36.84 million) for 2014 and VND817.47 billion ($36.09 million) last year.
The bank's stock closed at VND10,100 on Monday, down 3.81 percent from Friday.

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