The Vietnam Asset Management Company (VAMC) has issued the first batch of special bonds worth 718 billion VND (34.1 million USD) as an effort to handle bad debts for several banks, according to a State Bank of Vietnam’s announcement on October 14.
The bonds, which have a five-year maturity from October 16, 2013 to October 16, 2018 and a zero percent interest rate, are issued to three VAMC’s clients, including the Sai Gon Hanoi Bank (SHB), Petroleum Bank (PGBank) and Sai Gon Commercial Bank (SCB).
Accordingly, SHB will receive 74.65 billion VND worth of bonds, while PGBank and SCB will get 170.08 billion VND and 547.93 billion VND each.
Wholly owned by the State, VAMC with charter capital of 500 billion VND (23.5 million USD) is placed under the central bank’s management and supervision, and mandated to purchase bad debts of banks in two ways: at their book value by issuing special bonds, or at market value by using other sources.
VAMC targets to issue 35 trillion VND worth of special bonds to buy bad debts from now to the end of this year.-VNA
The bonds, which have a five-year maturity from October 16, 2013 to October 16, 2018 and a zero percent interest rate, are issued to three VAMC’s clients, including the Sai Gon Hanoi Bank (SHB), Petroleum Bank (PGBank) and Sai Gon Commercial Bank (SCB).
Accordingly, SHB will receive 74.65 billion VND worth of bonds, while PGBank and SCB will get 170.08 billion VND and 547.93 billion VND each.
Wholly owned by the State, VAMC with charter capital of 500 billion VND (23.5 million USD) is placed under the central bank’s management and supervision, and mandated to purchase bad debts of banks in two ways: at their book value by issuing special bonds, or at market value by using other sources.
VAMC targets to issue 35 trillion VND worth of special bonds to buy bad debts from now to the end of this year.-VNA
