(VOV) – The State Bank of Vietnam (SBV) governor Nguyen Van Binh has expressed hope that the Japan Financial Services Agency (JFSA) will encourage Japanese businesses to purchase Vietnam’s non-performing loans (NPLs).
Binh made the proposal at a working session in Hanoi on June 6 with Ryutaro Hatanaka JFSA Commissioner, adding the purchase is part of key cooperation between SBV and JFSA.
The Vietnam Asset Management Company (VAMC), an arm of SBV, was set up last July to acquire NPLs from commercial banks, providing much needed capital to enable the banks to lend again.
This is part of the central bank’s efforts to overhaul Vietnamese lending institutions and spur economic growth.
VAMC is developing a roadmap for selling loans it has purchased in recent times. However, incomplete legislation prevents the company selling loans to its partners.
According to a recent draft circular of the Ministry of Justice, the VAMC is only allowed to sell the assured debts worth less than VND10 billion to financial institutions. If the circular is approved, it would cause extreme difficulties for VAMC in solving NPLs.
Also on June 6, SBV and JFSA signed a cooperation document under which the latter will provide experts for SBV’s technical assistance projects.
JFSA has invited Vietnam to join the Asian Financial Partnership Center (AFPAC) – an initiative put forward by JFSA to share experience among Asian financial institutions.
Đăng ký: VietNam News
