The Vietnam Assets Management Company (VAMC) has just announced its 2019 business plan with the goal of recovering 50 trillion dong of bad debts. At the same time, the company also plans to issue 20 trillion dong of special bonds and buy 4.5 trillion dong of bad debts at market prices.
In order to ensure sufficient capital to promote debt purchase at market value, VAMC proposed to grant enough charter capital of five trillion dong (including additional three trillion dong injected) according to the plan approved by the prime minister.
Besides, VAMC said that it would continue to work with relevant ministries and branches to complete the legal framework; coordinate closely with credit institutions (CIs) in buying debts via special bonds; speed up debt purchases at market value and handle bad debts bought.
In 2018, VAMC said that it had bought 761 debts of 13 credit institutions (CIs) through special bonds with total principal balance of 30.917 trillion dong. Debt purchase price was 29.812 trillion dong, reaching 93.2 percent of special bonds according to the business plan of 2018.
Accumulated from the time of establishment until the end of 2018, VAMC had bought bad debts by special bonds with total internal debt balance of 338.849 trillion dong, debt-buying price was 307.567 trillion dong.
In particular, the company bought 40 debts with the purchase price of nearly 2.819 trillion dong, fulfilling 80.5 percent of the plan approved by SBV.
VAMC recovered 37.512 trillion dong of bad debt in 2018, bringing the accumulated recovery amount from 2013 to 119 trillion dong. In addition, the company also collected 10.925 trillion dong from debt selling activities; 5.2 trillion dong from selling secured assets and restructuring debts worth 1.156 trillion dong.
