VAMC buys $4.1 billion in bad debts
VAMC buys $4.1 billion in bad debts
The Viet Nam Asset Management Company (VAMC) has bought bad debts worth more than VND92 trillion (US$4.09 billion) from credit institutions this year.
The company's chairman, Nguyen Quoc Hung, said the amount has exceeded its VND80 trillion ($3.56 billion) non-performing loan purchase value targeted for 2015.
Since its establishment in 2013, the firm has acquired VND218.90 trillion ($9.73 billion) in bad loans, with a combined buying price of about VND191.32 trillion ($8.50 billion).
The firm, also known as VAMC, has recovered and sold debts and mortgages worth nearly VND15.67 trillion ($696.44 million) since then.
This month, the company has begun to issue a new class of bond against bad debts that it buys from credit institutions, one that can be traded between the central bank and lenders, as well as among the latter.
These bonds have been created through a circular of the State Bank of Viet Nam, which took effect on October 15.
Earlier, the company was issuing special bonds that could not be traded and could only be used as collateral to secure funding from the central bank.
The bonds, both old and new, carry a zero per cent interest rate.
