02/06/2020 13:31 GMT+7 Email Print Like 0

VAMC establishing debt trading floor

The State-run Vietnam Asset Management Company (VAMC) is in the process of founding a debt trading floor for managing and updating information on debts, according to its latest report.

The company also plans to seek permission from the State Bank of Vietnam and competent authorities to raise its charter capital to 10 trillion VND (430.73 million USD), in a bid to further enhance its financial capacity, thus becoming able to purchase non-performing loans (NPLs) at prevailing market prices.

At the same time, it is developing a database about NPLs and their collaterals for interested investors’ access. It is expected to pave the way for the establishment of a NPL data centre to boost transactions in NPL markets, of which the VAMC is the centre.

It will focus on buying NPLs from weak financial institutions and those whose NPLs account for over 3 percent of the total loans via special bonds to ward off risks to the domestic banking system.

This year, the VAMC aims to settle 50 trillion VND worth of NPLs, purchase 5 trillion VND worth of bad debts at market prices, and issue 15 trillion VND worth of special bonds.

The firm reported that it purchased bad debts with special bonds of 381 debts worth 20.54 trillion VND last year./.
VNA/VNP