The debt settlement company has a charter capital of 500 billion VND

Avatar of Nick John By Nick John Dec13,2023 #company #settlement
The debt settlement company has a charter capital of 500 billion VND 3
The debt settlement company has a charter capital of 500 billion VND 3

According to the document just announced by the Government, the State Bank will establish VAMC.

Regarding the method of purchasing bad debts, the Decree clearly states that the Asset Management Company purchases bad debts of credit institutions at book value using special bonds issued by the Asset Management Company.

Special bonds issued in Vietnamese Dong have a maximum term of 5 years and an interest rate of 0%;

VAMC will have a charter capital of 500 billion VND.

However, not all bad debts are bought back by VAMC.

The company purchases bad debts from credit institutions at market value on the basis of agreement and the value of bad debts is re-evaluated.

In addition, one must base on VAMC’s financial capacity as well as business efficiency and market conditions when buying bad debt at market price.

If a bank with bad debt over 3% does not sell debt to VAMC, it will be inspected or required to hire an auditing company to re-evaluate the quality and value of assets.

However, according to experts, both businesses and banks must be proactive in solving difficulties and should not rely only on VAMC.

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