Vietnam’s VAMC Tackles Nearly $3 Billion in Bad Debt since Inception

Tuan Minh

13:27 15/11/2017

BizLIVE - VAMC had bought 301.1 trillion dong ($13.26 billion) in trouble loans for 270.9 trillion dong as of September since its establishment in July 2013.

Vietnam’s VAMC Tackles Nearly $3 Billion in Bad Debt since Inception

The head office of VAMC in downtown Hanoi. Photo: Minh Tuan/BizLIVE

The Vietnam Asset Management Company (VAMC), run by the country’s central bank, has handled some 66 trillion dong ($2.9 billion) since its establishment in July 2013, said the company’s General Director Doan Van Thang.
The executive noted that parliament-approved Resolution 42, effective on August 15, has much facilitated the handling of NPLs as it allows the repossession of collateral.
Since the resolution took effect, VAMC has recouped up to 5 trillion dong, bringing the year-to-date amount to 16 trillion dong, Thang said.
Between January and September, the company - dubbed as the bad debt bank - acquired 25.54 trillion dong worth of non-performing loans (NPLs) in book value for 25 trillion dong, paid in special bonds. Accordingly, the company had bought 301.1 trillion dong ($13.26 billion) in trouble loans for 270.9 trillion dong as of September.
The company plans to buy at least another 2 trillion dong in NPLs from now to the year-end, Thang said.
The government agreed to quadruple VAMC’s registered capital to 2 trillion dong more than two years ago to help accelerate the bad debt solution. However, the capital hiking has not been materialized.

TUAN MINH

Từ khóa: VAMC, bad debt

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