CATEGORIES

© Copyright 2004; Hanoitimes - Economic and Urban Newspaper;

The tribune of Hanoi People’s Committee

Publication Permit: 29/GP-CBC

Editor - in - Chief: Nguyen Thanh Loi

Managing Editor: Ta Thu Giang

Email : thugiang@hanoitimes.vn

Head Office: 21 Huynh Thuc Khang Street, Dong Da District, Hanoi

Branch Office: 221 Tran Phu Street, Ha Dong District, Hanoi

WORDS ON THE STREET 70th anniversary of Hanoi's Liberation Day Vietnam - Asia 2023 Smart City Summit Hanoi celebrates 15 years of administrative boundary adjustment 12th Vietnam-France decentrialized cooperation conference 31st Sea Games - Vietnam 2021 Covid-19 Pandemic
Home / Economy / Trade - Service
VAMC looks to purchase US$149 million in NPLs with cash in 2018
Ngoc Thuy 11:57, 2018/09/10
The bad debt bank requested to be provided in full VND5 trillion (US$213.2 million) of charter capital, aiming to have sufficient capital for the purchase of bad debts under market value.
The central bank-run Vietnam Asset Management Company (VAMC), dubbed as the bad debt bank, plans to purchase non-performing loans (NPLs) worth VND3.5 trillion (US$149.3 million) in cash at market value, stated the company. 
 
Illustrative photo.
Illustrative photo.
Under the plan for 2018, VAMC is authorized to issue special bonds of up to VND32 trillion (US$1.36 billion). The bad debt bank targeted to resolve at least VND140 trillion (US$5.97 billion) in bad debts, of which the figure in 2018 would be VND34.5 trillion (US$1.47 billion). 

To achieve these target, VAMC requested the State Bank of Vietnam (SBV) and related government agencies to provide detailed guidance on the implementation of the National Assembly's Resolution No.42, which regulates special pilot treatment of bad debts at credit institutions and came into force in August 2017. 

Specifically, the Ministry of Natural Resources and Environment (MONRE) is expected to instruct on the procedure of collateral assignment being unfinished real property projects, while the Supreme People's Court shall provide simplified guidelines for application of law in terms of settlement of disputes over collateral. 

VAMC stated the company will also provide new services including capital contribution, share purchase, investment, brokerage, among others. 

Notably, the bad debt bank requested to be provided in full VND5 trillion (US$213.2 million) of charter capital under Prime Minister Nguyen Xuan Phuc's decision, aiming to have sufficient capital for the purchase of bad debts under market value. 

According to the report, VAMC will create favorable conditions for investors to access information with regard to bad debts and collateral. 

By the end of December 31, 2017, VAMC purchased more than 26,000 debts with special bonds from 42 credit institutions worth VND309.7 trillion (US$13.61 billion) at book value for VND279.2 billion (US$12.27 billion).

VAMC also successfully acquired debts worth VND3.14 trillion (US$138 million) at market value during this period, meeting the target set by the State Bank of Vietnam (SBV). 

In 2017, VAMC in collaboration with credit institutions reclaimed VND30.8 trillion (US$1.35 billion) in soured loans, up nearly VND2 trillion (US$87.9 million) year-on-year and 40% above the initial target.
Comments
Other news
18:45, 2024/11/28
Vietnam, Hesse (Germany) promote high-tech cooperation
Bilateral trade between Vietnam and Hesse has reached around EUR1 billion (US$1.05 billion) annually, accounting for one-tenth of total trade between Vietnam and Germany.
15:34, 2024/11/27
Big discounts on offer at Hanoi's November Promotion Festival
The event is part of the Hanoi Concentrated Promotion Program 2024, held in May, July, and November, attracting up to 2,000 businesses.
17:23, 2024/11/26
Hanoi unveils 150 most popular Vietnamese products and services for 2024
The "Most Popular Vietnamese Products" voting program is part of the city's broader efforts to encourage the consumption of local goods.
16:50, 2024/11/23
Hanoi hosts the Vietnam Regional Specialties Fair 2024
This year's fair will contribute to the promotion of trade and the expansion of typical regional products, especially agricultural and food products that meet export standards.
14:06, 2024/11/20
Hanoi strengthens export competitiveness and trade protection measures
Hanoi will work with the Ministry of Industry and Trade to ensure that businesses and manufacturers are ready for new challenges.
10:49, 2024/11/16
US reiterates Vietnam is not manipulating currency
The US Treasury Department’s positive evaluation underscores Vietnam’s progress in balancing its economic and monetary policies while fostering strong bilateral relations with the US.