VAMC plans to resolve US$5.95 billion of bad debts by 2020Thursday, September 13,2018
AsemconnectVietnam - The Vietnam Asset Management Company (VAMC) plans to resolve at least VND140 trillion (US$5.95 billion) of non-performing loans (NPLs) from now until 2020, of which VND34.5 trillion will be settled this year.
Under the company’s latest business plan released late last week, the State Bank of Vietnam (SBV)’s subsidiary also set to buy a maximum of VND32 trillion of NPLs from credit institutions this year by using its special bonds.
According to the legal regulation, holders of special bonds may use them as collateral for re-financing from the SBV.
Besides the issue of special bonds to buy NPLs, VAMC also targets to use cash to buy another VND3.5 trillion of NPLs according to market price in 2018. However, to have sufficient capital for the purchase of bad debts under market value, the company has asked the Government to increase its charter capital from the current VND2 trillion to VND5 trillion as approved by the Prime Minister in Decision 1058/QD-TTg dated July 19, 2017.
In order to meet the plans, VAMC requested SBV submit to the Prime Minister to direct competent ministries and agencies to soon issue guidance on the implementation of the National Assembly’s Resolution No. 42 on settling bad debts.
Specifically, the Ministry of Natural Resources and Environment should issue regulations on guiding procedures related the transfer of bad debts’ collaterals, which are unfinished real estate projects.
Meanwhile, the Supreme People’s Court should guide the application of the summary procedures in the dispute settlement of bad debts’ collaterals at court.
VAMC’s management said that the company will study and launch new services such as guarantee, capital contribution, share purchase, investment and leasing of collaterals.
In 2017, VAMC purchased 565 bad debts worth a total of nearly VND32.38 trillion from 414 customers of 14 credit institutions.
Since its launch in 2013 to the end of last year, it purchased 26,221 bad debts worth VND307.93 trillion of 16,269 customers in 42 credit institutions at a purchase price of VND277.75 trillion.
It last year alone recouped VND30.64 trillion of bad debts, raising the total until the end of last year to VND81.66 trillion.
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