10 forms to handle debts purchased and received by Vietnam Debt and Asset Trading Corporation (DATC)

According to the Decree No. 129/2020/NĐ-CP of Vietnam’s Government, the Vietnam Debt and Asset Trading Corporation (DATC) can handle debt purchased and received in the following forms:

1. Direct debt recovery from debtors and related parties by money, property, debt instruments (bonds, drafts).

2. Manage, invest, exploit and handle security assets (including debt-receiving properties) for debt recovery.

3. Sell debt by the following methods: auction or bid competitively, negotiate directly with organizations and individuals (excluding debtors). DATC sells debt by method of direct agreement with the buyer in one of the following cases:

- After the debt has been sold by the method of public auction or competitive bid without success;

- Before DATC signed the debt purchase contract, there was a customer's commitment to buy back 51% or more of the debt, or the entire debt, concurrently meet DATC's conditions on price, payment and deposit, the ability to participate in corporate restructuring or support the business to stabilize after the restructuring.

4. Receive the transfer of debt repayment obligations from the debtor to a third party.

5. Entrust debt recovery or debt recovery through debt collection service providers lawfully operating in Vietnam.

6. Convert debt into contributed capital at the enterprise.

7. Debt restructuring in the following forms: debt repayment term adjustment, debt extension, debt freezing, debt interest rate adjustment.

8. Partial or total reduction of debt repayment obligations.

9. Discounted debt collection.

10. Other forms in accordance with the provisions of law and decisions of competent agencies.

View more details at the Decree No. 129/2020/NĐ-CP of Vietnam’s Government, effective from December 10, 2020.

Thuy Tram

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