Hong Phuc
When VAMC has gained some experience and the situation gets better, the company will consider buying debts at market value. There needs to be an independent appraisal unit then to ensure transparency, he told the Daily ahead of the company’s inauguration scheduled for this Friday.
Currently, VAMC’s ability is still limited and thus it cannot purchase all bad debts at once. The company has to carefully consider how much it should purchase and who it should buy from.
VAMC cannot buy bad debts with problems in the process of loan application, collateral appraisal and use of loans, Binh stressed.
“VAMC doesn’t operate for profit, but it doesn’t mean loss is accepted. The company must try to minimize losses and have revenue exceeding expenditure,” he stated.
In the process of bad debt settlement, debt recovery ability greatly depends on mortgaged assets. “Thus, we will initially purchase secured debts only. Later, when VAMC’s capacity improves, we will consider buying unsecured debts,” he said.
Before coming to purchase decision, VAMC will carefully examine whether the values of mortgaged assets correspond to debt values.
Assets mortgaged for the debts bought by VAMC will be handled in two ways. They will be either liquidated at a negotiated price or put up for auction whether with or without consent of debtors.
The latter solution, according to Binh, will help speed up bad debt settlement. However, he expressed a concern that several problems would possibly emerge, making VAMC unable to auction mortgaged assets.
“There may be many events that we cannot anticipate now,” he said.
Decree 53 has provided a framework for VAMC to handle bad debts, but the company needs some more legal documents to receive a full support to sell mortgaged assets quickly, said the VAMC chairman.
The Ministry of Justice is working with SBV and the Ministry of Natural Resources and Environment over joint circular with guidelines for treatment of mortgaged assets. “We are waiting to see if VAMC will be favored over institutions. If not, there would be certain difficulties in handing mortgaged assets quickly to recover debts,” said Binh.
It is concerned that certain debts will quickly turn bad, including debts classified into group two and debts that have been restructured but are actually bad debts.
Binh admitted that there were a number of debts not as good as classified. “If there were no regulations on debt restructuring, some debts would have turned irrecoverable,” he noted.
He said Decision 780 of the central bank with regulations on debt restructuring was just an ad-hoc solution with an aim of relieving the financial burden on banks so that they could better assist enterprises. This decision will be annulled, but not now, he said.
Circular 02, scheduled to take effect on June 1, 2014, will lay down new criteria for debt classification, making the classification more accurate. SBV has asked credit institutions to get well prepared so that they will be financially capable enough to handle debts classified by new criteria.
Asked if private firms will have chance to sell their debts to VAMC, Binh stated VAMC would purchase debts based on bad debt criteria and characteristics of the debts that need handling, not on which economic sector the debtors come from.
VAMC is set for opening this Friday with a staff of 32 members.
“We now have 32 staff members and will recruit more. In the early stage, the company needs 50-60 employees,” said Binh.
All VAMC employees used to work at commercial banks and have experience in debt settlement. “I especially have high confidence in the company’s leadership,” said Binh.
Under the decision of the SBV governor dated July 16, Binh is appointed as chairman of the board of members of VAMC.
Nguyen Quoc Hung, deputy general director of Agribank, is chosen as vice chairman of the VAMC board of members. Meanwhile, Nguyen Huu Thuy, deputy head of the SBV’s Department of Foreign Credit Institution Inspection, is appointed as general director of the company.
Đăng ký: VietNam News
