Vietnam Asset Management Company to handle bad debts by selling collateralized assets from 2016.
As at June 15 the Vietnam Asset Management Company (VAMC) had bought VND28.19 trillion ($1.29 billion) worth of bad debts this year, bringing its total to VND143.8 trillion ($6.59 billion), according to a VAMC report reviewing its performance in the first half of 2015.
Mr. Nguyen Quoc Hung, Chairman of VAMC, said that from 2016 the company will focus on handling bad debts by selling collateralized assets. Bad debts in the banking sector must be managed at less than 3 per cent next year so the VAMC can focus on selling and not buying.
He said, however, that any bad debts incurred next year would still be purchased by VAMC, at market value, and it will restrict issuing special bonds to fund such purchases.
VAMC will also hold auctions from next year to sell collateralized assets by order of the court, in accordance with Circular No. 18/2014/TT-BTP.
Around 95 per cent of bad debt purchased by VAMC have property put forward as collateral.