The headquarters of the Viet Nam Asset Management Company (VAMC) on Ha Noi's Hang Voi Street. The bank said VAMC should be developed into a centre of bad debts handling and restructuring of the credit institutions system. — Photo tinnhanhchungkhoan.vn
The State Bank of Viet Nam (SBV) proposes expanding the Viet Nam Asset Management Company's (VAMC) operations, saying the agency should purchase and sell bad debts and assets of all sectors in the economy.
VAMC should be developed into a centre of bad debts handling and restructuring of the credit institution system, SBV says in a Decision on the Development Strategy of VAMC until 2030 it recently approved.
VAMC is tasked with promoting the development of the debt trading market, ensuring the safe and sustainable development of credit institutions, the Decision says.
In the 2018 - 2020 period, VAMC's goal is to buy at least VND330 trillion (US$14.3 billion) of total accumulated bad debts. Of the estimate, VAMC is expected to buy a minimum of VND12 trillion-VND13 trillion of bad debt under market value.
The Decision says VAMC played the central role in the bad debt trading market, developing a project on a Debt Exchange to submit to competent authorities for approval.
After the exchange is approved, VAMC will set up and operate the exchange. It will also establish an Asset Management Club whose members includes VAMC and debt and asset management companies under credit institutions.
In the 2021-2025 period, VAMC must complete the establishment and put into operation the Debt Exchange. At the same time, it will build up a debt and asset data centre which will be connected with the National Credit Information Center (CIC) and credit institutions to create more data sources to exploit.
In the 2026 - 2030 period, the State Bank proposes expanding VAMC's operations, saying the agency should purchase and sell bad debts and assets of all sectors in the economy, promoting investment and asset exploitation activities, asset trading and asset valuation consultation.
VAMC will also provide financial consultation services for building strategic development for investors and business mergers and acquisitions.
The State Bank will send petitions to competent authorities to supplement capital to VAMC so that its capital reaches VND10 trillion in the 2020-2021 period.
The State Bank will instruct VAMC to promote debt retrieval, strengthening facilities, investing in IT systems and offices, improving the quality of human resources and enhancing financial capacity.
The State Bank also proposes VAMC mobilise capital from domestic and international organisations and individuals in accordance with the law.
The bank also requires VAMC to co-operate with domestic and foreign investors to participate in corporate restructuring, M&A in accordance with the law. — VNS