Body tasked with settling SOE debts and assets to receive capital boost.
The Vietnam Debt and Asset Trading Corporation (DATC) - managed by the Ministry of Finance - has increased its charter capital by VND3.1 trillion ($147.62 million) through the National Foundation for Supporting Enterprises Development and other extra-budgetary funds.
The Prime Minister has agreed to arrange the additional charter capital in the 2014-2015 period, which includes VND2.5 trillion ($119.04 million) from the State budget and VND600 billion ($28.57 billion) from extra-budgetary sources, the Government office said.
The Ministry of Finance (MoF) will be appointed to revise DATC’s charter capital and manage the capital in-flow if extra-budgetary funds are not sufficient.
DATC was registered with charter capital of VND2 trillion ($95.24 million) from the State budget and is responsible for outstanding debts and assets settlement as assigned by the PM or MoF. It must use at least 70 per cent of its total capital investment to purchase the debts and assets of State-owned enterprises (SOEs). Decision No.20 from MoF states that 20 SOEs must handle their non-performing loans through DATC.