VAMC buys $10.2B bad debt since 2013

Minh Tam

12:02 06/10/2015

BizLIVE - The Vietnam Asset Management Company, run by the Vietnamese central bank, has purchased a total of 224.87 trillion dong (10.22 billion USD) at book value worth of non-performing loans from local banks since its launch in 2013.

VAMC buys $10.2B bad debt since 2013

The Vietnamese central bank has been struggling to cut bad debt ratio to below 3% by end-2015

The company bought 91.31 trillion dong worth of bad debt for 82.16 trillion dong in the 9 months through September, exceeding its 80-trillion dong target set for this year, Vietnam Asset Management Company (VAMC) Chairman Nguyen Quoc Hung told the Vietnam News Agency. VAMC currently issues special bonds in exchange for bad loans.
VAMC has also recouped a combined 9.83 trillion dong from spoiled loans since the start of this year, doubling that in the whole 2014, thanks to the country’s buoyant economy and the thawing real estate market. As much as 14.85 trillion dong has been recouped since 2013, Mr. Hung tipped.
The firm will fulfill its 2015 plan to recoup 10 trillion dong by the end of October, the official added.
Nguyen Kim Anh, deputy governor of the State Bank of Vietnam, said at a workshop on Monday that the local banking system has handled as much as 424.14 trillion dong in bad debt between 2012 and August 2015, of which 41.3% was resolved via VAMC, helping reduced the bad debt ratio in the system to 3.21% in August 2015 from around 17% in 2012.