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.