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PM approves decree to set up VAMC

Update: May, 22/2013 - 09:58
The plan to set up a Viet Nam Asset Management Company (VAMC) and a decree on its organisational structure and activities will be approved this month.— Photo pertrotimes

HA NOI (VNS)— Prime Minister Nguyen Tan Dung yesterday approved a plan to set up the Vietnam Asset Management Company (VAMC) and a decree on its organisational structure and activities.

The company will officially go into operation on July 9 this year.

Under the plan, VAMC is a one-member limited company, 100 per cent State-owned and subject to the Government's management and supervision. VAMC has charter capital funded by the SBV.

The company will issue bonds to buy debts of credit institutions who can use the bonds to access refinancing loans of the central bank.

Through its debt purchase process, VAMC will ease debt repayment pressure; support firms to overcome their temporary financial difficulties. These firms' debt schedules can be adjusted or their overdue interests can be reduced or exempted.

With special authorities, VAMC will also co-ordinate with other relevant ministries and agencies to help firms deal with legal and tax policy difficulties.

With the VAMC participation, the process to cope with guarantee assets of credit institutions will be speeded up. Investors will be also allowed to take part in the process as the assets will be bid for according to market rules.

According to the central bank, local firms that sell non-performing loans to the VAMC can still borrow funds from commercial banks. — VNS

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