VAMC proposes 6 measure groups for promoting bad debts settlement


According to Mr. Doan Van Thang, General Director of the Vietnam Asset Management Company (VAMC), in 2018 VAMC set a goal of purchasing bad debts by issuing special bonds at a value ofroughly 27 to 32 thousand billion dongs, purchasing debts of 3,500 billion dongs at market prices. VAMC would recover 24,890 billion dongs expectedly.

For the implementation of the plan to push up the process of bad debts settlement, VAMC has worked out 6 measure groups for the coming time as follows.

The first measure group is to promote purchasing debts by issuing special bonds and purchasing debts at market prices, specifically by: getting permission fromthe State Bank of Vietnam (SBV) for increasing VAMC’s charter capital, at the same time proposing a plan onissuing bonds for purchasing debts as regulated by the Decree 53/2013/NĐ-CP (amended, supplemented) and Decision 1058/QĐ-TTg dated 19th July 2017 in order to ensure the funds for effective implementation of debts purchasing at market prices. 

Besides, to intensify searching and exploiting list of debts bought by special bonds, debts on and off balance sheets at credit institutions, to work with credit institutions and other partners, select debts with feasibility to deal with after purchases as a basis to propose VAMC to buy debts at market prices.

The second measure group is for debt settlement. VAMC would continue its bidding/competitive quotation/sales of debts and collaterals for the best recovery values; continue ongoing tenders for some debts and collaterals, specifically collaterals for debts owned by customers of the Saigon One Tower joint-stock company; concentrate on reviewing, analyzing and evaluating the situation of customers and classify customers, debts, collaterals of bad debts that have been purchased to define recovery possibility and work out proper solutions.

VAMC would also follow up lawsuits/judgments enforcement against debts that have been authorized for credit institutions to settle in order to speed up recovery process; collaborate with General Department of Civil Judgment Enforcement to deal with long lasting cases; actively push up customers’ payment of their debts; collaborate with credit institutions to take solutions to overcome difficulties and shortcomings in bad debts and collaterals settlement; monitor and urge credit institutions to recover and settle collaterals as authorized by VAMC.

The third measure group is about finalizing the organizational model of VAMC. VAMC leaders revealed that once SBV approved the Scheme for restructuring and improving the operation of VAMC and its new charter, VAMC would finalize its organizational structure to promote purchases and settlement of bad debts, as well as improve its professional activities that would be used in the coming time, especially enhance VAMC’s assets bidding; continue to submit to SBV for approval of charter capital injection up to 5,000 billion dongs as regulated at the Decision 1058/QD-TTg so that VAMC would have sufficient resources to actively implement its assigned missions; effectively preserve and exploit entrusted resources as regulated by law.

The fourth group relates to the internal examination and supervision to timely detect violations in order to minimize risks during operation. VAMC would conduct regular and random examinations at credit institutions relating to investment trust; strengthen examination and supervision of borrowers and collaterals of purchased debts.

The fifth group is to launch new professional operations, specifically: VAMC would complete frameworks and professional processes relating to guarantee, capital contribution, stock purchase, investment, exploitation, repair and leasing of collaterals, consultancy and brokerage…; hold events and training courses with profound experts on related areas sharing their experiences, skills and legal issues with VAMC staff for the new professional operations implementation.

The sixth and also the final group of measures specifies VAMC’s focus on its legal framework finalization. Especially, for the implementation of the Resolution 42/2017/QH14, VAMC proposes relevant ministries and agencies to promptly promulgate guiding documents, specifically: the Ministry of Natural Resources and Environment to issue guidance on procedures for disposing unfinished real estate projects as collaterals for bad debts, the People’s Supreme Court to guide the application of simplified procedures to proceedings of collaterals at court.  

At the same time, VAMC suggests to establish an inter-ministerial working force on bad debts settlement as directed in the Scheme for restructuring credit institutions attached with bad debts settlement approved by the Prime Minister at the Decision No. 1058.


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