By the end of 2017, VAMC has purchased more than 26,000 debts from 42 credit institutions worth VND307 trillion (US$13.4 billion) at original value for price of VND277 trillion (US$12.1 billion), announced the Deputy Governor of the State Bank of Vietnam (SBV) Nguyen Kim Anh at VAMC’s meeting reviewing the company’s target in 2018.
VAMC is responsible to buy up bad debts from credit institutions.
|
Notably, VAMC in collaboration with credit institutions have reclaimed VND30.7 trillion (US$1.3 billion), an increase of VND2.7 trillion (US$118 million) over 2016 and surpassing the original target of VND22 trillion (US$965 million).
Since the beginning of 2018, VAMC has stepped up effort in auctioning bad debts from banks such as BIDV or SHB, with the initial value of VND 380 billion (US$16.7 million). These include properties in Binh Duong province from Tan Quoc Duy Steel Company, asset-based loan of Puzolan Gia Lai Cement Company at SHB and bad debts of Kim Son Building Material Production Company at BIDV.
With priority of buying up bad debts in credit institutions, in 2018, VAMC will continue to review and implement plans on handling bad debts on the basis of market mechanism, requested Kim Anh.
Additionally, VAMC strives to purchase at least VND6.6 trillion (US$289 million) at market value through solutions and measures stated in the plan of restructuring credit institutions in association with handling bad debts in period 2016 – 2020 approved by the Prime Minister.
However, it is important to restrict buying bad debts through special bonds (maturity period from 5 to 10 years), aiming to ensure the safety and healthy development of banking system, per the Prime Minister’s request.
VAMC in the coming time have to closely cooperate with related administrative agencies and ministries implementing the roadmap of increasing chartered capital for better handling of bad debts, said Kim Anh.
Specifically, in 2018, VAMC set target of purchasing bad debts from VND27 trillion – VND32 trillion (US$1.1 billion – US$1.4 billion) paid by special bonds; purchasing bad debts at market value of VND3.5 trillion (US$153 million); reclaiming bad debts of VND24.9 trillion (US$1.1 billion); reclaiming bad debts paid by special bonds and at market value of VND20 trillion (US$878 million) and VND4.9 trillion (US$215 million), respectively.
