The Prime Minister has approved a project on dealing with bad debts of credit institutions and the establishment of a Vietnam Asset Management Company (VAMC) to improve the situation.
According to Decision 843/QDD-TTg, the settlement of credit organisations’ bad debts aims to create conditions for them to lend more money at a reasonable interest rate, helping tackle difficulties faced by businesses, promoting economic growth and stabilising the macro economy.
It is expected to help improve the liquidity, safety, health and efficiency of credit organisations and the monetary market by basically settling current bad debts by the end of 2015.
The project focuses on credit institutions with bad debts exceeding 3 percent of their total debt, and bad debts secured by collateral, particularly real estate.
The VAMC, having a total charter capital of 500 billion VND, will be established as a special tool of the state to rapidly solve bad debts and make the financial system healthier, reducing risks for credit institutions and businesses, promoting reasonable credit growth in the economy.
It will buy bad debts from banks via bond issuance. In particular circumstances it can also purchase debts at the market price with non-bond capital.
Also in early June, the Prime Minister has urged relevant ministries and agencies to continue implementing Decision 929/QD-TTg issued on July 17, 2012, on the restructuring of state-owned enterprises (SOEs), especially economic groups and corporations.
On June 4, the Prime Minister also requested the Ministry of Finance to propose to the Government a mechanism for SOEs to withdraw capital from their non-core business activities.-VNA
According to Decision 843/QDD-TTg, the settlement of credit organisations’ bad debts aims to create conditions for them to lend more money at a reasonable interest rate, helping tackle difficulties faced by businesses, promoting economic growth and stabilising the macro economy.
It is expected to help improve the liquidity, safety, health and efficiency of credit organisations and the monetary market by basically settling current bad debts by the end of 2015.
The project focuses on credit institutions with bad debts exceeding 3 percent of their total debt, and bad debts secured by collateral, particularly real estate.
The VAMC, having a total charter capital of 500 billion VND, will be established as a special tool of the state to rapidly solve bad debts and make the financial system healthier, reducing risks for credit institutions and businesses, promoting reasonable credit growth in the economy.
It will buy bad debts from banks via bond issuance. In particular circumstances it can also purchase debts at the market price with non-bond capital.
Also in early June, the Prime Minister has urged relevant ministries and agencies to continue implementing Decision 929/QD-TTg issued on July 17, 2012, on the restructuring of state-owned enterprises (SOEs), especially economic groups and corporations.
On June 4, the Prime Minister also requested the Ministry of Finance to propose to the Government a mechanism for SOEs to withdraw capital from their non-core business activities.-VNA
