DATC to get $146m infusion for tackling SOE bad debts
DATC to get $146m infusion for tackling SOE bad debts
Prime Minister Nguyen Tan Dung has agreed to give an additional VND3.1 trillion, or roughly US$146 million, to the Debt and Asset Trading Corporation (DATC) for the 2014-15 period.
According to business news website Gafin, VND2.5 trillion or $117 million of the additional funds for the DATC's charter capital will come from the fund for enterprises arrangement and development, and VND600 billion or $28 million from other sources.
The finance ministry is responsible for arranging the financial resources for the DATC.
Established in 2004 with a charter capital of VND2 trillion ($94 million), funded by the State budget, the DATC was recognised as a special State-run company. It aims to deal with bad debts and unused assets of State-owned groups and corporations to improve their financial condition, promote restructuring and transform them into joint-stock companies.
According to the finance ministry's regulation, the DATC has to use at least 70 per cent of the total investment capital to purchase debts and assets of companies with 100 per cent State-invested capital.
