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Banking & Finance

VAMC lowers interest rate on bad debts

Released at: 15:38, 11/04/2015

VAMC lowers interest rate on bad debts

Changes will only come into effect for debts bought with the US dollar.

by Hung Nguyen

Vietnam Assets Management Company (VAMC) has announced lower interest rates on bad debts that companies have bought with the US dollar, shifting from 4.5 per cent to 4.3 per cent per year.

It has held rates the same for debts bought by VND at 9.9 per cent per year. Likewise, it remains stable for debts bought with the euro, at 5.7 per cent per year.

The Government has amended and supplemented a previous decree dated May 18, 2013 on the establishment, organization and operation of VAMC. It now allows VAMC to issue bonds to buy bad debts at market prices from April 5, 2015.

After almost one year of operation, as of the end of 2014, VAMC has bought nearly VND121 trillion ($5.6 billion) of principal from 39 financial institutions and collected over VND4.1 trillion ($189.78 million).

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