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Equitisation arm to increase charter capital

Update: September, 09/2015 - 07:52

(DATC)  will increase its charter capital from a current VND2.48 trillion (US$110 million) to VND6 trillion ($266 million) starting October 15. — Photo cafef.vn

HA NOI (VNS) — The Debt and Asset Trading Corporation (DATC), an important arm of the Government's efforts to equitise State-owned companies, will increase its charter capital from a current VND2.48 trillion (US$110 million) to VND6 trillion ($266 million) starting October 15.

The announcement came in the form of Circular 135/2015/TT-BTC issued by the Ministry of Finance.

The equitisation of State-owned companies remains slow and resolution of bad debts has fallen below Government expectations. The capital increase was done as a way to speed up DATC's work.

DATC, whose capital is fully sourced by the State, handles bad debts and unused assets of State-owned groups and corporations to improve their financial condition, restructuring process and transform them into joint-stock companies.

It provides financial services such as buying, selling and handling debts and assets.

The DATC settles debts by directly retrieving debts, resuming guaranteed assets, selling debts and changing debts into capital contribution. They also have the power to officially assign debt responsibility, extend debt payback period and adjust interest rates.

In the first half of the year, DATC brought in a total revenue of VND900 billion (US$39.9 million), including VND700 billion ($31.1 million) from debt trading.

The corporation has already dissolved debts and assets at 33 enterprises, amassing a total revenue of VND62.4 billion ($2.77 million), five times higher than the first half of last year. — VNS

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