VND80 trillion in bad debts to be collected this year.
The plan of the Vietnam Asset Management Company (VAMC) to buy VND80 trillion ($3.8 billion) worth of bad debts has been approved by the State Bank of Vietnam (SBV).
The approval was contained in Document No. 1264/NHNN-TTGSNH, which permits VAMC’s plan to issue special bonds with a maximum value of VND80 trillion.
The period of the issuance is from January 1, 2015 to December 31, 2015, with a maximum term of five years. VAMC will decide the term for each specific bond, which will be suitable with debt and purchasing agreements made between VAMC and financial institutions.
SVB has requested that VAMC coordinates closely with the institutions to handle the debts and support customers, in accordance with laws.
At the end of 2014, Mr. Doan Van Thang, Deputy Director of VAMC, said that as at December 23, 2014, VAMC had bought a total of VND123 trillion ($5.85 billion) worth of bad debts
According to the plan, this year VAMC will start buying debt at market prices. However, according to experts, with the compiling and modification of legal documents relating to current debt settlement, in 2015 VAMC will consolidate debt levels. After this year the company can begin with debt handling, selling and purchasing debts at market prices.