Business
SBV grants VND500 billion to bad debt management company
  • By An Ha | dtinews.vn | August 11, 2013 06:29 AM
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The State Bank of Vietnam on August 9 gave VND500 billion (USD24 million) in charter capital to the Vietnam Asset Management Company (VAMC). 
 
 VAMC established on July 26

The funds were disbursed by the national fund for policy implementation.

VAMC was established on July 26. Its management structure consists of members council, a board of directors and a board of controllers. Dang Thanh Binh, Deputy SBV Governor, was appointed as chairman of the company’s Members Council; and Nguyen Huu Thuy, of the SBV’s Banking Inspection and Supervision Agency is VAMC’s CEO. 

VAMC is expected to help deal with between VND80 and VND100 trillion worth of bad debts with the recovery ratio of 20% to 40%. It is estimated that the company's annual revenues in the next five years will be VND60-160 billion, which is expected to be enough to cover its business costs.

Thuy said they will quickly issue special bonds to 10 banks in the next two months in order to purchase VND10 trillion worth of bad debt. Banks will be able to use these bonds as security to apply for refinancing loans from the SBV. 

According to Thuy, IFC, a member of World Bank; TPG Growth LLC, a private equity company and Standard Chartered Plc have connected with them to discuss working with VAMC.

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