The central bank-run Vietnam Asset Management Company (VAMC), dubbed as bad debt bank, aims to recoup VND50 trillion (US$2.14 billion) in non-performing loans (NPLs) this year, according to the company’s latest business plan.
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To have sufficient fund for NPLs acquisition at market value, VAMC has requested to be pumped an additional VND3 trillion (US$128.52 million) to raise its charter capital to VND5 trillion (US$214.21 million).
According to the plan, VAMC expects to continue working with related government agencies in perfecting the legal framework and cooperating with credit institutions in purchasing sour loans.
In 2018, VAMC bought in 761 debts from 13 credit institutions with special bonds worth VND29.81 trillion (US$1.27 billion) with book value of VND30.91 trillion (US$1.32 billion).
The company acquired 40 bad debts worth over VND2.8 trillion (US$120 million) with cash, equivalent to 80% of the year’s estimate.
As of the end of 2018, VAMC purchased a total of VND339 trillion (US$14.52 billion) in debts with special bonds for VND307 trillion (US$13.15 billion), while recouping VND119 trillion (US$5.1 billion) in bad debts from 2013 to the end of 2018.
Deputy Governor of the SBV Nguyen Kim Anh considered VAMC as the state's special instrument in clearing toxic debts, creating stability for the banking system over the last five years.
