HANOI: The Viet Nam Asset Management Company has planned this year to buy more than VND111 trillion (US$4.9 billion) of principal debts by its special bonds, General Director Nguyen Huu Thuy said.
Thuy said his company would continue to buy bad debts with its special bonds. The debts would also be purchased at market price this year in ways approved by the central bank, in which VAMC would had to itself assess guaranteed assets and negotiate prices with banks (instead of prices fixed by lenders based on inflated collateral evaluation, as had been done thus far.)
The special bonds are issued in forms of certificates, book entries or electronic date. Their par value is equal to the price of bad debts. They are denominated in Vietnamese dong with a five-year maturity, and a zero coupon that can be used to get re-financing loans from the central bank.
Thuy said the company would be a special financing assessor having enough capacity to resolve bad debts, playing an important role in the debt selling and buying market and being a centre of bad debt purchase, assessment and asset auctions. By December 31, 2015, the company had issued special bonds worth more than VND243 trillion ($10.8 billion).
In the year 2015, the company in co-ordination with credit institutions had revoked debts worth nearly VND22.8 trillion ($1.01 billion) from selling bad debts and guaranteed assets from 2013 to December 31, 2015, making an increase of 228 per cent compared with its set target.
