VAMC comes into operation but not a magic stick

VGP - The Viet Nam Asset Management Company (VAMC) officially came into operation on July 26, more than two months after PM Nguyen Tan Dung signed Decree 53/2013/ND-CP on establishment of the company.

July 26, 2013 7:01 PM GMT+7

The launching ceremony of the Viet Nam Asset Management Company

Speaking at the launching ceremony on the same day, Governor of State Bank of Viet Nam Nguyen Van Binh said it is not the “magic stick” to deal with all non-performing loans of nearly US$5 billion.

The Governor said VAMC is mandated to put non-performing loans under control by 2015.

Wholly owned by the State, the company with charter capital of VND 500 billion will be put under the central bank’s management and supervision.

It is responsible for purchasing bad debts of credit organizations in two ways: It can buy bad loans at their book value by issuing special bonds, or at market value by using other sources.

VAMC’s headquarter is located at No. 22, Hang Voi Street, Hoan Kiem District, Ha Noi./.

By Hai Minh