VAMC aims to resolve $2.14bil of bad debts this year
The Vietnam Asset Management Company (VAMC) plans to handle $2.14 billion worth of bad debts in 2019, and issue special bonds to purchase $856 million of non-performing loans.
This year, the VAMC targets to buy 4.5 trillion VND (192.6 million USD) worth of non-performing loans at market value.
In a bid to fulfill its plan, VAMC has proposed raising its current charter capital from 2 trillion VND (86 million USD) to 5 trillion VND (215 million USD) this year. The move is aimed at enhancing the company’s financial capacity to buy and sell bad debts at prevailing market prices.
VAMC asked the Ministry of Finance to instruct the collection of corporate and income tax in case of mortgaged asset transfer in service of bad debt recovery, thus ensuring rights of mortgaged asset buyers.
Meanwhile, it is requesting the Ministry of Natural Resources and Environment to issue regulations on registration of mortgage of land use right, and procedures to transfer collateral of bad debts in pending property projects as stipulated at clause 1, Article 9, Resolution No.42.
Last year, VAMC purchased more than 30.9 trillion VND (1.32 billion USD) of bad debts from 13 credit institutions. As of December 2018, the company bought over 338.84 trillion VND (14.5 billion USD) worth of bad debts at a price of 307.56 trillion VND (13.16 billion USD). -VNA