Friday, 14 Dec 2018
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ECONOMY

VAMC recoups nearly US$4 billion in bad debts

Updated at Friday, 22 Jun 2018, 11:52
The Hanoitimes - As of May 31, 2018, Vietnam Asset Management Company (VAMC) recouped VND90.6 trillion (US$3.95 billion) worth of bad debts or 32% of the debt amount it had purchased, according to Nguyen Tien Dong, the company`s chairman.
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).
 
Illustration photo.
Illustration photo.
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.

With priority of buying up bad debts in credit institutions, VAMC is tasked with reviewing and implementing plans on handling bad debts on the basis of market mechanism, requested the SBV Deputy Governor Nguyen Kim Anh.

Additionally, VAMC will strive to purchase at least VND6.6 trillion (US$289 million) in toxic debts at market value, which is in conformity with a plan to restructure credit institutions in association with handling bad debts in the 2016 - 2020 period approved by the prime minister. 

Consequently, the PM requested VAMC to limit buying bad debts through special bonds (maturity period from 5 to 10 years), in order to ensure safety and healthy development of the banking system.

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). 
Nguyen Tung
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