The Vietnam Asset Management Company (VAMC) has set to handle 40-70 trillion VND (18.8-32.9 billion USD) of non-performing loans (NPLs) in 2013, according to the State Bank of Vietnam (SBV).
The SBV reported that as of July 2013, total NPLs of credit organisations were valued over 138 trillion VND (64.8 billion USD).
The SBV has signed Decision 1085/QD-NHNN on an action plan of the banking sector to implement the project on "Resolving non-performing loans of credit institutions" and the project on the establishment of VAMC for Credit Institutions of Vietnam.
So far, credit institutions have positively cut operation costs, restricted dividend shares, controled credit risks, and strengthened investigations and compliance of legal regulations.
They are increasing risk prevention funds to resolve NPLs and reschedule deadlines for debt payments in a bid to minimize difficulties for enterprises.
In the January-August period, three out of four weak commercial banks were restructured.
The SBV has so far received 24 of the 25 restructuring plans of commercial banks.
Wholly owned by the State, VAMC with charter capital of 500 billion VND (23.5 million USD) is placed under the central bank’s management and supervision, and mandated to purchase bad debts of banks in two ways: at their book value by issuing special bonds, or at market value by using other sources.