Vietnam’s new regulations on purchase of bad debts at market value

15:42, 16/08/2017

This is a notable content of Circular No. 09/2017/TT-NHNN amending Circular No. 19/2013/TT-NHNN on purchase, sale and settlement of bad debts by Vietnam Asset Management Company (VAMC).

According to Circular No. 09/2017/TT-NHNN of the State Bank of Vietnam, VAMC may only purchase a bad debt specified in Point a of Clause 7a Article 3 of Circular No. 19/2013/TT-NHNN after the following tasks are completed:

- Determining whether the bad debt satisfies all of the conditions in Clause 1 Article 23 of Circular No. 19/2013/TT-NHNN;

- Determining the market price of the bad debt, including collateral for such bad debt. VAMC shall valuate the bad debt itself or hire an independent organization to do it;

- Analyzing and assessing the efficiency, risks, and probability of capital recovery;

- Analyzing and assessing the status and potential of the bad debt, the borrower, the guarantor, debt payer, and conditions for buying the bad debt agreed with the debt-selling credit institution;

- Feasible plans for settling the debt and its collateral.

View full text at Circular No. 09/2017/TT-NHNN of the State Bank of Vietnam, effective from August 15, 2017.

- Thanh Lam -

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