Vietnam: Procedure for approving the plan for buying debts at market values

Vietnam Asset Management Company (VAMC) shall purchase bad debt at market value according to steps guided in Article 25 of Circular No. 19/2013/TT-NHNN of the State Bank of Vietnam, specifically as follows:

Step 1: VAMC shall make 01 application for approval of the plan for buying bad debts at market value and send it to the State bank (Bank Supervision and Inspection Agency) directly or by post). The application consists of:

- A written request for the approval for the plan for buying bad debts at market value signed by the legal representative of VAMC;

- A resolution of the Member assembly of VAMC on passing the plan for buying bad debts at market value enclosed with the plan for buying bad debts at market value specified in Article 24 of Circular No. 19/2013/TT-NHNN.

Time to make the application: Before December 15, VAMC shall make an application to request the State bank to approve the plan for buying bad debts at market value of the next year.

Step 2: Within 15 working days from the day on which the sufficient and valid application is received, the State bank shall send VAMC a written response as to approving or not approving the plan for buying bad debts at market values made by VAMC. If the plan is not approved, explanation must be provided in the written response.

Based on the condition of VAMC, market developments and necessity for settling bad debts, the State bank shall consider revising, superseding, or annulling the approved plans for buying bad debts at market value where necessary.

View relevant provisions at Circular No. 19/2013/TT-NHNN of the State Bank of Vietnam, effective from September 15, 2013.

Thu Ba

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