Government decides to raise the Vietnam Asset Management Company's (VAMC) charter capital to $93.89 million.
The adjustment is part of prime ministerial decree 34/2015/ND-CP, issued on March 31, which revises and supplements the previous decree issued in 2013. Based on the State Bank of Vietnam’s (SBV) proposal, it allows VAMC to issue bonds for the purchase of debts at market price. Its current charter capital sits at $23.47 million.
The SBV will regulate VAMC’s bond issuance. The company’s bonds, which are held by credit institutions, can be used to participate in market transactions and refinancing at the SBV.
Last year, VAMC bought non-performing loans worth about $4.57 billion, raising the total bad debts it had purchased from credit institutions to $6.43 billion.