VAMC purchases nearly US$12.1 billion in bad debts in 5 years
The introduction of Resolution 42, which provides special pilot treatment of bad debts at credit institutions, played an important role in VAMC`s recent positive performance.
The central bank-run Vietnam Asset Management Company (VAMC) purchased a total of VND279.7 trillion (US$12.1 billion) worth of non-performing loans (NPLs) from VND279.7 trillion (US$12.1 billion) with special bonds from its establishment in mid-2013 to end-2017, VnExpress cited a report of the company as saying.
Illustration photo.
|
The purchase reached its peak in 2015 with VND100 trillion (US$4.31 billion).
During the 2013 - 2017 period, VAMC recouped VND81.2 trillion (US$3.5 billion) and sold VND14.29 trillion (US$616.8 million) worth of bad debts. The debt management firm's revenue in this five-year period reached over VND296 trillion (US$12.78 billion).
The result contributed significantly to bringing the bad debt ratio in the banking system to below 3%, while supporting enterprises during the debt-restructuring process, getting exemption from and reduction of loan interest, and accessing banks' loans, stated VAMC.
The introduction of Resolution 42 adopted by the National Assembly in mid-2017 also played an important role in VAMC's recent positive performance. The resolution, which came into effect last August, provides special pilot treatment of bad debts at credit institutions.
Substantially, VAMC's revenue and pre-tax profit in 2017 reached the highest levels since the company's establishment, standing at VND89.1 trillion (US$3.84 billion) and VND20.47 trillion (US$883.7 million), respectively.
In 2018, VAMC set target of purchasing bad debts worth VND27 trillion - VND32 trillion (US$1.1 billion - US$1.4 billion) with special bonds and VND3.5 trillion (US$153 million) with cash at market value, while handling bad debts worth VND24.9 trillion (US$1.1 billion).
According to the plan to restructure credit institutions in association with handling bad debts in the 2016 - 2020 period approved by the prime minister, VAMC's charter capital will be increased from VND2 trillion (US$86.35 million) to VND5 trillion (US$215.8 million), while the company remains 100% state owned.
17:51, 2025/01/07
Vietnam prioritizes agriculture and renewable energy for access to green loans
The move is part of the government’s effort to accelerate economic restructuring and build resilience to climate change while protecting the environment.
16:49, 2025/01/06
Vietnam GDP expands by 7.09% in 2024
The 2024 growth rate is considered positive amidst global uncertainties and domestic challenges such as natural disasters.
14:39, 2025/01/04
Vietnam stock market set to accelerate in 2025: Experts
Stable macroeconomic fundamentals, ongoing institutional reforms, and favorable monetary policies will be positive for corporate earnings.
16:31, 2025/01/02
Vietnam stock market aims for emerging status by 2025: Finance minister
By the end of 2024, the benchmark VN-Index reached 1,266.78 points, up 12.11% from 2023.
15:33, 2025/01/02
Vietnam set to extend VAT cut for six months
This measure is expected to accelerate the recovery of production and business activities, which will ultimately benefit the state budget and the economy as a whole.
21:29, 2024/12/31
Vietnam’s credit growth projected to expand by 16% in 2025
Growth must put operational safety first, and channel credit to productive business sectors, priority areas, and growth-driving industries.
- Regional, international financial centers mean boosters to Vietnamese economy: Deputy PM
- IFC sets record with US$1.6 in climate financing to support Vietnam’s green transition
- Vietnam's credit growth up 10% in 10 months
- Building Hanoi's smart city with smart banking
- Vietnam stock market clears major legal hurdle to potential upgrade
- Cashless parking in Hanoi: Good model fuels smart transport