Governor of the State Bank of Vietnam Nguyen Van Binh has signed a
decision to set up the Vietnam Asset Management Company (VAMC),
effective from July 9 this year, in a move to resolve bad debts and
boost credit growth.
The approved one-member limited
company, with a charter capital of 500 billion VND (23.8 million USD),
is 100-percent State owned and will be managed, supervised and inspected
by the central bank. The company has a Members Board, a Supervisory
Board and a CEO.
VAMC is permitted to buy bad debts from
banks and will recover debts and put collateral up for sale as well as
restructure debts. It will also adjust the conditions on loans and
convert debt into equity.
It is allowed to consult and act
as a broker to trade debts and assets, make financial investments and
purchase sales as well as auction off assets and provide guarantees for
businesses and individuals so they can access bank loans.
VAMC,
whose head office can be found at No. 22 Hang Voi Street , Hoan Kiem
District, is also allowed to set up branches or representative offices
in a number of centrally-run provinces and cities with approval from the
central bank.-VNA