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Tuesday,  May 30,2017,14:31 (GMT+7)

VAMC wants to quintuple capital

Hong Phuc
Tuesday,  Mar 21,2017,21:51 (GMT+7)
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VAMC wants to quintuple capital

Hong Phuc

HCMC - Vietnam Asset Management Company (VAMC) wants to raise its chartered capital from VND2 trillion to VND10 trillion by 2020 so that it could buy more bad debts in the banking system.

This is one of the proposals VAMC has sent to authorities as part of a roadmap to better its bad debt settlement capacity in 2017-2020.

If the proposal is approved, VAMC would be able to increase its finances, buy more debts, back the formation of a debt trading market and set up a risk management fund.

VAMC was established with total chartered capital of VND500 billion in 2013, which was later adjusted up to VND2 trillion in 2015 following a Government decision.

In addition, VAMC would issue VND45 trillion worth of Government-guaranteed bonds to raise capital from organizations and individuals at home and abroad. The company intends to step up borrowing from domestic and international sources to settle government debts starting in 2018.

Additional funding would be also needed for risk management in its debt trading operations. VAMC wants to launch a fund to supplement its chartered capital and add risk provisions which can be used to fund non-performing loans bought at market prices.

VAMC is continuing to buy non-performing loans from weak credit institutions which are being restructured. It is expected that the company will have bought a total of VND150 trillion through the issuance of special bonds by 2020.

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Giấy phép Báo điện tử số: 321/GP-BTTT, cấp ngày 26/10/2007
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