Which agency establishes asset management company of Vietnamese credit institutions according to current regulations?
- Which agency establishes asset management company of Vietnamese credit institutions according to current regulations?
- What activities does the Asset Management Company of Vietnamese credit institutions perform?
- What is the method by which the asset management company buys the credit institution’s bad debts?
Which agency establishes asset management company of Vietnamese credit institutions according to current regulations?
Pursuant to Article 3 of Decree No. 53/2013/ND-CP stipulating as follows:
Establishment of asset management company in Vietnam
1. The State Bank of Vietnam (hereinafter referred to as the State Bank) shall establish the asset management company to handle bad debts, promote reasonable credit growth for the economy.
2. Asset management company is a specialized enterprise and is organized in the form of a one-member limited liability company whereby the State owns 100% of charter capital and is subject to the State management, inspection and monitoring conducted by the State Bank.
According to the above provisions, the agency having the right to establish the asset management company of Vietnamese credit institutions is the State Bank of Vietnam (hereinafter referred to as the State Bank).
In addition, asset management company is a specialized enterprise and is organized in the form of a one-member limited liability company whereby the State owns 100% of charter capital and is subject to the State management, inspection and monitoring conducted by the State Bank.
Which agency establishes asset management company of Vietnamese credit institutions according to current regulations?
What activities does the Asset Management Company of Vietnamese credit institutions perform?
According to the provisions of Article 12 of Decree No. 53/2013/ND-CP on the activities of the Asset Management Company as follows:
Activities of Asset Management Company in Vietnam
1. Asset Management Company may perform the following activities:
a) Purchase of bad debts of credit institutions;
b) Debt recovery, debt collection and handling, sale of debtd and collateral;
c) Restructuring of debt, adjustment of debt repayment conditions, conversion of debts into contributed capital, the capital stock of the loan customer;
d) Investment, repair, upgrade, exploitation, use and lease of collateral whose debts have been collected by the asset management company.
e) Management of bad debts bought and checking and monitoring of collateral related to bad debts, including documents and records relating to bad debts and loan guarantee;
g) Consultation, brokerage, debt and asset sales;
h) Financial investment and capital contribution, share purchase;
i) Organization of asset auction.
k) Guarantees for organizations, businesses and individuals to borrow money from a credit institution;
k) Other activities consistent with the functions and duties of the Asset Management Company after being allowed by the State Bank.
2. Asset Management Company may authorize the credit institutions to sell debts and perform the activities specified at Point b, c, d and e, Clause 1 of this Article.
Thus, the Asset Management Company of Vietnam Credit Institutions is entitled to carry out the activities specified above.
Including restructuring of debt, adjustment of debt repayment conditions, conversion of debts into contributed capital, the capital stock of the loan customer.
What is the method by which the asset management company buys the credit institution’s bad debts?
Pursuant to Article 7 of Decree No. 53/2013/ND-CP stipulating as follows:
Method by which the asset management company buys the credit institution’s bad debts
1. Buying credit institution’s bad debts in the book value by special bonds issued by the asset management company.
2. Buying credit institution’s bad debts with market price by the fund which is not special bonds.
3. Based on the Asset Management Company’s financial capacity, economic efficiency and market conditions, the Asset Management Company may buy the credit institution’s bad debts by the method prescribed in Clause 2 of this Article for bad loans meeting the following conditions:
a) Meeting the conditions specified in Article 8 of this Decree;
b) Being able to fully recover money used to buy bad debts;
c) Secured assets of the bad debts can be put on sale;
d) Loan customer is able to restore debt repayment
4. The member Board of the Asset Management Company shall develop the plan for buying bad debts by the method specified in Clause 2 of this Article for submission to the Governor of the State Bank before implementation.
Thus, the Asset Management Company buys bad debts of credit institutions through the above method.
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