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Friday,  Mar 24,2017,23:03 (GMT+7)

VAMC acquires bad debts from 42 credit institutions

Hong Phuc
Thursday,  Mar 16,2017,23:51 (GMT+7)
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VAMC acquires bad debts from 42 credit institutions

Hong Phuc

HCMC - Vietnam Asset Management Company (VAMC) has purchased 25,631 bad debts from credit institutions in Vietnam since its establishment three and a half years ago.

VAMC has used special bonds to acquire the bad debts at VND245.67 trillion (around US$10.76 billion) compared to the total principal of VND282.12 trillion.    

Currently, 41 credit institutions hold the special bonds totaling VND205.66 trillion as one bank has settled its bad debts previously transferred to the debt trading firm.

VAMC said most of the bad debts are guaranteed by collateral comprising of properties and assets created from bank loans, such as factories, enterprises, industrial parks and corporate bonds among others. Of which, real estate assets are valued at over VND268.87 trillion, equivalent to 62% of total debts, assets built on land at more than VND31.3 trillion (7.2%), debt papers at roughly VND12.9 trillion (3%), machinery and equipment at over VND22 trillion (5.1%) and transport means at VND18.22 trillion (4.2%).

VAMC has begun a pilot scheme to acquire bad debts based on market prices, evaluate debts, find debt buyers and work with credit institutions over debt settlement plans. However, the company acknowledged that the scheme has not produced as good results as expected due to a number of problems.  

VAMC has classified bad debts and mapped out solutions after its meetings with credit institutions.

Since 2013, VAMC has joined forces with credit institutions to apply multiple measures to collect more than VND50.16 trillion, including selling debts and mortgaged assets.

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Giấy phép Báo điện tử số: 321/GP-BTTT, cấp ngày 26/10/2007
Editor-in-Chief: Tran Thi Ngoc Hue; Deputy Editor-in-Chief: Pham Huu Chuong
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