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SBV submits asset management plan

Update: December, 27/2012 - 10:56

HA NOI (VNS)— The State Bank of Viet Nam submitted a proposed decree on the establishment and operation of a national asset management corporation to the Government yesterday.

The decree, expected to be issued in January, sets up a corporation under the so called N+1 model, in which the central bank acts as the manager while other ministries also participate.

Basically, it is a special 100 per cent State-owned enterprise established by the Prime Minister for non-profit activities.

"All the procedures of collecting opinions on and establishing the asset management corporation will be completed in January," Deputy Prime Minister Hoang Trung Hai said at a meeting yesterday between the Government and localities.

Meanwhile, the Ministry of Finance would finish regulations on mergers and acquisitions, equitisation and debt restructuring.

It would also be the ministry's responsibility to set up debt instruments to deal with the troubles in banks and State-owned enterprises (SOEs). A decree on business debt management to replace Decree 69, which deals with the settlement of outstanding debts in SOEs, is expected to be submitted by the second quarter of next year.

At the meeting, Hai told the central bank to review and classify bad debts by type of business and credit institution and by sector in order to implement appropriate measures for handling each type of debt.

Hai also asked the bank to improve regulations on credit safety to limit credit risks. At the same time, he added, credit institutions should be able to take a more active role in implementing current policies.

The Government would have the responsibility to support credit institutions handling bad debt and prevent bad debts from arising. — VNS

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