VAMC announces interest rate for purchased bad debts
|The interest rates will be applicable to purchased bad debts, which the VAMC had approved to adjust the rate from April 15 to June 30. — Photo thoibaonganhang
HA NOI (VNS)— Vietnam Asset Management Company (VAMC) will adjust annual interest rates for purchased bad debts at 10.7, 5.2 and 5.7 per cent for the Vietnamese dong, US dollar and Euro, respectively.
The interest rates will be applicable to purchased bad debts, which the VAMC had approved to adjust the rate from April 15 to June 30.
The move is a response to Circular 19/2013/TT-NHNN issued by the State Bank of Viet Nam requiring the VAMC to consider adjusting the interest rates currently applied to purchased non-performing loans to reasonable levels. The levels will be suited to the loan repayment ability of borrowers and market interest rates for every quarter and in line with agreements in credit contracts, loan acknowledgements, entrustment contracts, and corporate bond purchase contracts, as well as loan purchase and sale contracts.
The VAMC will announce the interest rate every quarter.
The VAMC reported that in the first quarter of this year, the company bought bad debts worth VND3.9 trillion ($185.7 million) – much lower than its target of VND10 trillion ($476.2 million).
The VAMC has so far purchased nearly VND43 trillion ($2.05 billion) of bad debts through its bonds. However, it has recovered more than VND300 billion ($14.3 million) worth of debts. — VNS