VietNamNet Bridge – Vietnam Asset Management Company (VAMC) has cut deals to buy debts from 20 credit institutions, a source from the enterprise said.



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Since the beginning of the debt purchase scheme, VAMC has bought an average VND1 trillion of bad debts every week.

Nguyen Quoc Hung, vice chairman of VAMC, said that the enterprise has plans to buy around VND1 trillion worth of debts next week from a number of banks, including two new lenders. By the year-end the enterprise has plans to buy debts with VND35 trillion worth of issued special bonds.

Among debt sellers, Agribank is the first State-owned bank that has transferred over VND8 trillion worth of debts to VAMC. Mekong Housing Bank is also selling debts worth around VND500 billion to the enterprise.

Meanwhile, other large State-run banks also have plans to sell huge debt volumes to VAMC, another source said.

Hung said that there have been positive signs from debts VAMC has purchased as some minor debts have been recovered.

Last week, the central bank issued a document that allows credit institutions to put unused risk reserve funds out of their balance sheets. This is a great motivation for banks to sell debts to VAMC.

VAMC has started to review and classify loans into groups and set up scenarios to deal with the debts.

Speaking at the National Assembly session earlier this week, the central bank’s governor Nguyen Van Binh said that credit institutions have restructured around VND300 trillion worth of debts, around 10% of total outstanding loans. Of which, around 60% of debts should have been classified as bad debts if they were not rescheduled.

As of September 30, bad debts accounted for 4.62% of total outstanding loans of the banking system. Bad debt growth rate also slowed down during the period.

If banks had not rescheduled loans and set up risk reserve funds in 2012 and the Jan-Sep period in 2013, the bad debt ratio would have been 12.7% as of September 30.

Industry insiders said that the figure is the most accurate among data provided by managing agencies.

Source: SGT