The VAMC has bought $4.76 billion in bad loans so far. — Photo hanoimoi.com.vn

HA NOI (Biz Hub) — The Viet Nam Asset Management Company (VAMC) has bought more than VND100 trillion (US$4.76 billion) in bad debts so far.

About VND65 trillion ($3.10 billion) of debts were purchased this year alone.

According to the Tuoi tre (Youth) newspaper, the company sold and recovered about VND4 trillion ($190.48 million) of the debts.

VAMC Chairman Nguyen Quoc Hung told the newspaper that the biggest problem for the firm now is how the debts can be sold so that the interests of both the banks and the borrowers are assured.

A complete mechanism for dealing with property mortgages has not been put in place yet. Thus, speeding up of debt processing is still difficult, he said.

"If VAMC sell debts at any cost, the damage for the banks and the borrowers will be great. Besides, it is not easy to seek bad debt buyers at a time when the market conditions are still tough," he added.

The State Bank of Viet Nam has submitted a draft document revising Decree No 53/2013/ND-CP, which regulates the establishment and organisation of VAMC, to the government for consideration.

In the draft, the central bank suggested that the charter capital of the company be raised to VND2 trillion ($95.24 million) from the current VND500 billion ($23.81 million). — VNS