VAMC buys $190 million of bad debts

Wednesday, Apr 02, 2014 16:26

VAMC buys about $190.4 million in bad debts in the first quarter.— Photo baodatviet
HA NOI (Biz Hub) — The Viet Nam Asset Management Company (VAMC) has purchased nearly VND4 trillion (US$190.4 million) in bad debts from ten credit institutions in the first quarter.

This was stated by the VAMC's member council vice president Nguyen Quoc Hung. He told the Saigon Economic Times online that a total of 169 debts have been refinanced with special bonds issued by VAMC worth VND3.048 trillion ($145.1 million).

So far, the state-owned VAMC has bought VND42.8 trillion ($2.038 billion) worth of debts from 40 credit institution in Viet Nam, Hung said.

According to the VAMC, it would buy VND70 trillion ($3.3 billion) in bad debts in four quarters of 2014. It was set to buy VND10 trillion ($476.2 million) in the first quarter. Though the VAMC failed to meet this target, the vice president is determined to reach the yearly target.

He told the newspaper that they would not buy the debts at any price but would make the best choice for the purchase. And more importantly, he added, the VAMC must be responsible with the bad debts it has bought.

The VAMC, according to Hung, was focusing on reviewing and classifying the debt to coordinate with credit institutions for handling it in the best possible manner.

Hung had a positive outlook on the possibilities of resolving debt this year, adding that credit institutions should not treat his company the sole solution to the issue of debt.

They must be visionary about the quality of their assets and seek alternatives to handling bad debt in the long term, Hung added. He went on to say that if the credit institutions are not proactive, they will fail.

The VAMC was established in July 2013 to remove bad debts from the banking sector. — VNS

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